Kentucky Supreme Court Ruling on Noncompete Agreements: Employment Law Manual Updated

Authors: Melissa A. Silver and Marta Moakley, XpertHR Legal Editors

In Creech v. Brown, the Kentucky Supreme Court held that continued employment may not be sufficient consideration for a noncompete agreement after an employee commences employment. Instead, the employer must give the employee something of value in exchange for the noncompete, such as a promotion, an increase in wages, specialized training or an alteration of the at-will relationship created by an employment contract establishing rights and imposing obligations on both parties.

As a result of this decision, the Terms of Employment: Kentucky and Employee Communications: Kentucky sections of the Employment Law Manual have been updated.