June 2, 2023

Are you subject to a non-compete agreement? Nearly one in five Americans are.

In Kentucky, non-compete clauses are generally enforceable. But on January 5, 2023 the FTC proposed a new rule that would ban them. Public comments were accepted up until April 19th. Now, the proposals are under review.

As we await for the FTC to make its move, the General Counsel of the National Labor Relations Board issued a memo two days ago stating that she believes many non-compete agreements are overly broad if they “could reasonably be construed by employees to deny them the ability to quit or change jobs by cutting off their access to other employment opportunities that they are qualified for based on their experience, aptitudes, and preferences as to type and location of work.”

Thus, while non-compete clauses are still generally enforceable in Kentucky, there are high level efforts to limit their use, if not outright ban them.

If you are negotiating a contract, severance agreement, or feel your non-compete is overly broad, we may be able to assist you.