Allowed if reasonable

Non-compete law in Kentucky

Kentucky has no statute regulating employee noncompetes generally; they are judged under common-law reasonableness (no case cited here). The one statutory restriction found, KRS 216.724, bars health care services agencies from restricting temporary direct care staff with non-compete clauses or contract buy-outs. Bills to restrict employee noncompetes (2025 SB 234, which would make non-compete clauses unenforceable; 2025 HB 690 and 2026 HB 813, which would bar employers from requiring 'covered employees' to sign them) were referred to committee and show no further action on the legislature's pages.

Last verified · confidence medium. Clauseworthy is not a law firm and does not give legal advice.

Employee non-competes
Not banned; conditions apply
Pay floor
None in the statute
Duration
No statutory cap (common-law reasonableness).

Exceptions and special rules

  • No statute located on sale-of-business covenants; governed by common law.
  • Temporary direct care staff placed by health care services agencies (assisted living, long-term care, hospitals). A health care services agency may not restrict the employment opportunities of temporary direct care staff it contracts with or employs, including contract buy-out provisions or non-compete clauses; may not charge liquidated damages or fees if the worker is hired permanently (except fees payable solely by the facility and pro-rated); may not solicit the facility's current staff. A noncompliant contract is an unfair trade practice and void under KRS 365.060. Does not apply to permanent direct care staff. (KRS 216.724)

Remedies

KRS 216.724(2): a noncompliant agency contract is an unfair trade practice and void under KRS 365.060. No general statutory remedy scheme.

Recent changes

  • 2026-03-09. HB 813 (2026 Regular Session) would create a new KRS Chapter 336 section prohibiting employers from requiring covered employees to sign covenants not to compete, with civil remedies and penalties; last action 2026-03-09 'to Economic Development & Workforce Investment (H)'; official page last updated 2026-08-19, no later action shown. Not enacted. Source
  • 2025-02-26. 2025 Regular Session: SB 234 (non-compete clauses unenforceable; last action 2025-02-20 to Judiciary (S)) and HB 690 (covenant-not-to-compete restrictions; last action 2025-02-26 to committee). Neither enacted. Source
  • 2023-06-29. KRS 216.724 amended by 2023 Ky. Acts ch. 61, sec. 3 (created 2022 Ky. Acts ch. 110, sec. 4, effective 2022-07-14). Source

Primary sources

Checker

What the statute says for these facts

Four facts. The answer leads with what the statute does at that pay, then names any change already enacted, then quotes the details with their citations.

The person who would sign

Several statutes treat contractors differently.

Other states on file