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Showing 7 posts in Non-Compete Agreement.
Kentucky Supreme Court Decision Drastically Impacts All Non-Compete Agreements
Earlier this year, the Kentucky Supreme Court reversed the Kentucky Court of Appeals’ holding in Creech, Inc. v. Brown, and held, in a landmark decision, that continued employment, standing alone, is no longer sufficient consideration to justify or support enforcement of a non-compete agreement. This reverses prior precedent that employer-employee agreements may be executed in exchange for merely retaining one’s job. While the case has an intricate and complex set of facts, this article focuses on the consideration requirement only, as the Kentucky Supreme Court chose not to address any other issues. More >
Getting “Sandwiched” Into a Non-Compete Agreement
The Huffington Post recently reported that Jimmy John’s, the national sandwich chain, requires its workers to sign strict non-compete agreements. The agreement was disclosed as part of a lawsuit by employees, and many in the employment industry are wondering if such an agreement is really necessary for the company’s minimum wage workers. These agreements are usually saved for high-level executives or those subject to proprietary information – not the guy behind the counter making a sub. More >
An Important New Decision Affects Non-Compete Agreements in Kentucky
The Kentucky Supreme Court recently reversed the Kentucky Court of Appeals’ holding in Creech, Inc. v. Brown, and declared that continued employment, standing alone, is no longer sufficient consideration to justify or support enforcement of a non-competition agreement. In the course of reaching its decision, the Court clarified prior case law dealing with the issue of whether non-competition agreements may be executed in exchange for merely retaining one’s job. While the case has an intricate and complex set of facts, this post focuses on the consideration requirement only. More >
Complete Your Non-Compete: Helpful Drafting Tips, cont.
Earlier this week, I discussed the importance of tailoring non-compete agreements to ensure enforceability and provided some factors to consider when drafting. Below are four more factors that should help you create a strong non-compete agreement. More >
Complete Your Non-Compete: Helpful Drafting Tips
Perhaps you consider your non-compete agreement just one form in a stack of many? When it is time to use it there is not much to the process: you retrieve it from the HR office, briefly discuss it with the employee, and he willingly signs it. But such a practice is a perilous one because non-compete agreements are not meant to be “one-size-fits-all.” Rather, they should be thoughtfully tweaked to each specific employee and situation. By relying on boilerplate language and fill-in-the-blank forms, you are risking the chance that a court will find your agreement unenforceable. More >
So you have non-compete agreements in place. Are they still enforceable?
You’ve assessed your company’s needs and have figured out that you have key personnel who should have non-compete agreements. You’ve had your lawyers draw up reasonable agreements, you’ve offered consideration in the form of new employment or a promotion, and your employees signed. All is well, right? More >
Who Breached First? Protecting the enforceability of an employer’s no-compete agreement in Kentucky.
Many employers are aware of the substantial benefits a no-compete agreement can provide. No-compete agreements (also referred to as covenants not to compete) offer effective protection for an employer’s legitimate business interests, including but not limited to preventing former employees from taking away clients or customers[i] and protecting against the use and dissemination of an employer’s confidential and/or proprietary information.[ii] Indeed, even Kentucky courts acknowledge that no-compete agreements serve as a “valuable business tool” for employers. [iii] More >
