The majority of the legal issues we encounter come unexpected to our clients and nearly all of these should be handled quickly. The Shelton Law Group, based in Louisville, Kentucky, practices employment law throughout the Commonwealth of Kentucky and is there for you when you need a lawyer you can trust.
What is a covenant not to compete?
Typically, a covenant not to compete involves an employee in the state of Kentucky who agrees not to work for competitors of their employer when they leave the company. These covenants are sometimes called “non-compete clauses”. Upon signing such an agreement it can either be a condition for employment or the employee may receive additional compensation.
When are covenants not to compete unenforceable?
It is difficult to determine whether or not a judge will uphold a covenant not to compete. Courts in Kentucky give importance to employees’ freedom to choose the type of employment that they desire, even when the interests of the employer is still considered significant. Consequently, the covenants that are deemed to be reasonable according to the circumstances are the ones the courts usually uphold. Agreements found to be unreasonable by the courts include those that last for an unusually long period of time or cover vast geographical areas that are excessively large and effectively deprive the employee of the ability to earn a living.
Courts have also limited the applicability of non-compete agreements to competitors who are rationally related to the industry of the employer. Lastly, there must be a legitimate business reason motivating an employer to impose a covenant not to compete on an employee.
Do I need an attorney when dealing with a covenant not to compete?
You may wish to hire a lawyer to review your non-compete agreement since your particular agreement could improperly restrict your legal right to work. Negotiated changes to the covenant not to compete could be made or entirely new restrictive language acceptable to all parties is also sometimes possible. An attorney can also be a source of valuable advice when it comes to filing suit against employees for breaching covenants, or counseling employees who have signed such agreements regarding whether they can accept a different job.
Based in Louisville, Kentucky, the Shelton Law Group practices Kentucky employment law, including non-compete agreement law. Contact the Shelton Law Group today at l 888-761-7204 to speak with a lawyer. At the Shelton Law Group – we take your case personally.
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