News

Covenants Not to Compete

Q:        Are Covenants Not to Compete in Kentucky Enforceable?

            A:         Yes they are.  However, the covenant must be reasonable as to time, scope and territory and it must protect a legitimate interest of the employer.  The three -�œreasonableness-�� factors considered by the court are as follows:

                        1.         Time Duration:  The length of the covenant should be no longer than necessary to protect the employer's legitimate interest.  This will usually be from one to a maximum of six years.

                        2.         Geographical Restriction: The geographic restricted area should be limited to the area where the employer conducts business.

                        3.         Scope: The covenant can only restrict future employment or activity in the same or similar business which the employee was engaged in.

                        Kentucky courts have the authority to make changes to any of the above three elements of a covenant not to compete to the extent it finds them to be unreasonable or unfair.