Reasonableness test
Kentucky Non-Compete Law (2026): Allowed; consideration required
Kentucky leaves noncompetes entirely to the courts, which enforce them when the time, territory and restricted activity are reasonable and the employer has a genuine interest to protect. The defining feature of Kentucky law is consideration: since Creech in 2014, asking an existing employee to sign without giving anything beyond the job they already have will not produce a binding agreement. Legislative efforts to add a wage floor have gone nowhere, and none is pending.
The rule
How Kentucky treats non-compete agreements
Creech is about formation, not reasonableness, which means a Kentucky employer can lose on consideration even with an impeccably narrow clause - and can win on a fairly broad one that was signed at hire. Worth remembering too that Kentucky courts will trim an overreaching covenant rather than discard it, so establishing the consideration defect is usually a stronger play than attacking scope.
If you are an employer
Pair any mid-employment noncompete with a concrete benefit - a raise, promotion, bonus or newly granted access to protected information - and document it, because Creech makes bare continued employment a losing position.
If you are a worker
If you signed on your first day, the covenant is probably supported; if you signed years in and received nothing in return, Creech gives you a direct and well-established defense.
| Classification | Common-law reasonableness; strict consideration rule |
|---|---|
| Pay threshold | None. The roughly $104,000 figure sometimes attributed to Kentucky came from HB 690, which died in committee in March 2025 and has no legal effect. |
| Maximum term | No statutory limit. Kentucky courts examine duration for reasonableness and have most often enforced terms of one to three years, with the analysis driven by the nature of the customer relationships being protected. |
| Notice or consideration | No review period or advisory. Consideration is the operative constraint: an employee already on the payroll must receive something of real value - a promotion, a raise, a bonus, access to new confidential information - because continued employment by itself will not support the covenant. |
| Primary statute | Common law; no noncompete statute |
Detail
What has changed, and what is still moving
Legislation 2024–2026
None. Kentucky enacted no noncompete legislation in 2024, 2025 or 2026, and the state still has no statute of general application in this area.
Bills to watch
No significant restrictive bills pending. HB 690, which would have barred noncompetes for workers earning less than $2,000 per week, died without a hearing when the 2025 session adjourned on Mar. 28, 2025, and was not refiled in 2026.
Leading cases
Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014) - continued at-will employment is not, standing alone, consideration for a noncompete signed after hire. Higdon Food Service, Inc. v. Walker, 641 S.W.2d 750 (Ky. 1982) - the reasonableness framework for time, territory and restricted activity. Kentucky appellate decisions after Creech confirm that courts may reform an overbroad restriction rather than void it.
If you have one in hand
What can make a non-compete unenforceable in Kentucky
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Kentucky.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Kentucky non-compete questions
Are non-compete agreements enforceable in Kentucky?
Kentucky leaves noncompetes entirely to the courts, which enforce them when the time, territory and restricted activity are reasonable and the employer has a genuine interest to protect. The defining feature of Kentucky law is consideration: since Creech in 2014, asking an existing employee to sign without giving anything beyond the job they already have will not produce a binding agreement. Legislative efforts to add a wage floor have gone nowhere, and none is pending.
How long can a non-compete last in Kentucky?
No statutory limit. Kentucky courts examine duration for reasonableness and have most often enforced terms of one to three years, with the analysis driven by the nature of the customer relationships being protected.
Is there a minimum salary for non-competes in Kentucky?
No. Kentucky sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Kentucky require?
No review period or advisory. Consideration is the operative constraint: an employee already on the payroll must receive something of real value - a promotion, a raise, a bonus, access to new confidential information - because continued employment by itself will not support the covenant.
Sources
How this entry was checked
- Primary source. None to link — Kentucky has no non-compete statute and the rule is judge-made, so the cases named below carry the authority.
- Secondary sources consulted. Kentucky case law, Kentucky Legislative Research Commission bill records (25RS HB 690, 26RS), Stoll Keenon Ogden, Keating Muething & Klekamp, Epstein Becker Green.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.