Kentucky Non-compete Agreement Template

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A Kentucky non-compete agreement is a written contract. In it, an employee or independent contractor promises not to compete with an employer, or share its confidential information, during the job and for a set time afterward. Our free non compete agreement Kentucky template lets you set how long the restriction lasts, which businesses are off limits, and where it applies.

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What a Kentucky Non-Compete Agreement Covers

A non-compete agreement helps an employer protect its business. The employee agrees not to compete with the employer, or use its confidential information, for a set period. Confidential information usually includes, but is not limited to:

  • Production-related data, including designs, manufacturing techniques, know-how, and experimental work
  • Computer programs and databases
  • Information about the employer's partners, sponsors, or clients
  • Marketing and management tools
  • Financial reports and business statistics

Many contracts leave out information the employer has already made public. Our non compete agreement Kentucky template covers these points:

  • Parties and date. The effective date, plus the name and address of the worker and of the employer.
  • Term. The restriction lasts through the working relationship and for a number of years afterward that you fill in.
  • Non-competition. You check whether the worker may not work for any direct competitor or only for businesses you name. You can add a geographic area and say whether the restriction applies to online business.
  • Non-solicitation. During the term, the worker may not lure away the employer's staff, contractors, customers, or vendors.
  • Court reform clause. If a court finds a restriction unreasonable, the parties agree the court may narrow it.
  • Governing law. Kentucky law applies, and you fill in the county for any court action.
  • Signatures. Both parties sign with a printed name and a title.

For a version that is not specific to Kentucky, see our non-compete agreement example. You can also pick the non-compete template for employees or the non-compete template for independent contractors.

Kentucky Non-Compete Laws and Restrictions

Kentucky has no statute that sets the standard for enforcing a non-compete agreement. That standard comes from court decisions. One decision from the state's highest court holds that a non-compete signed during at-will employment is not enforceable when the employee received nothing for signing it but continued employment.[1]

That decision is Charles T. Creech, Inc. v. Brown, decided on June 19, 2014. The court noted that after Brown signed the agreement:

  • His employment relationship with Creech did not change.
  • He remained an at-will employee.
  • He received no promotion, no increase in wages, and no specialized training.

So Brown received no consideration, meaning nothing of value, in exchange for signing the agreement or after he signed it. The court held the contract was not enforceable.[1]

Tip: employers who want to protect their business should consider giving the worker something new when they sign, such as a raise, a promotion, or training, and note it in the agreement.

Signing the form does not guarantee that a court will enforce it. Have a Kentucky employment lawyer review the contract before you rely on it.

Frequently Asked Questions

Can a health care staffing agency in Kentucky use a noncompete on its staff?

No. Under Ky. Rev. Stat. § 216.724, a health care services agency cannot restrict the employment opportunities of the temporary direct care staff it employs or contracts with. That includes contract buy-out provisions and non-compete clauses.[2]

Does Kentucky have a law that limits how long a non-compete can last or where it applies?

No. Kentucky has no statute that sets a time or area limit for a non-compete agreement.

Does Kentucky law set exceptions for the sale of a business or for low-wage workers?

No. Kentucky has no statute that sets exceptions for the sale of a business, low-wage workers, or third parties.

General information, not legal or tax advice.

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Sources

  1. Charles T. Creech, Inc. v. Brown, No. 2012-SC-000651-DG (Ky. June 19, 2014).
  2. Ky. Rev. Stat. § 216.724.
Published: May 20, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Kentucky law. If you notice an error or outdated information, please contact us.