Keeping Secrets Safe with Non-Compete Contracts
A non-compete agreement is a contract that prohibits one of the contracting parties from engaging in activities that are competitive with the other contracting party. It can help a company protect its trade secrets, intellectual property and other confidential information. However, it cannot be used to restrain trade or unreasonably restrict an individual from earning a living.
At the Kentucky law firm of McBrayer PLLC, we have extensive experience helping employers hire and retain the right employees while keeping their company secrets safe. Our clients range from small businesses to large Fortune 500 corporations.
Our lawyers were instrumental in revising Kentucky's laws regarding non-compete contracts. In the landmark case Creech, Inc. v Brown, attorneys Jon Woodall and Brendan Yates won a victory at the Supreme Court level and changed how the enforceability of these agreements is determined.
The Six Primary Factors That Determine Enforceability
Trial courts have the authority to modify any provisions of the agreement that are deemed unreasonable. In general, a contract that interferes with public interests or places undue hardship on the employee will require modification.
Here are the six primary factors the courts consider:
1. The nature of the industry
2. The relevant characteristics of the employer
3. The history of the employment relationship
4. The interests the employer can reasonably expect to protect
5. The degree of hardship the agreement imposes on the employee
6. The effect the agreement has on the public
Our Professionals Are Here To Protect Your Business
Because the Kentucky courts carefully weigh the above factors and other relevant issues during litigation, it is vital to craft non-compete agreements that can stand up to the intense scrutiny.
At McBrayer, we have the legal acumen and knowledge you need to help protect your business interests to the fullest extent possible under the law. Our meticulous, customized approach to contract drafting can also help you proactively avoid potential litigation altogether.
Learn more about how our law firm can benefit your business. Call us at 859-231-8780 or send us an email. From our Lexington, Louisville, Greenup, and Ashland offices, and a government relations office in Frankfort, we serve clients across the state and nationwide.
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