Authored by Cynthia L. Effinger
More and more frequently, Kentucky courts are addressing the validity of non-compete agreements, and in many instances, businesses are learning that their agreements are not in compliance with Kentucky law. All too often, businesses cast too wide of a net when restricting their employees' future endeavors, finding themselves without an enforceable agreement. In order to ensure that your agreement will protect your business interests and be enforceable, the restrictions should take into consideration: (a) the nature of your industry; (b) the relevant characteristics of your business; (c) the history of the employment relationship with the individual; (d) the interests that the business can reasonably expect to be protected; (e) the hardship imposed upon the employee, particularly the ability for the employee to earn a living within the restrictions; and (f) the effect the agreement has on the public.
Given the investment businesses make in both their proprietary information and employees, it is worthwhile to review and revise these non-compete agreements to ensure that business interests are properly protected.