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Employee Restrictive Covenant Agreement

Cover Terms

The terms below are incorporated into and form part of this agreement.

Employer[Legal name of the employer]
Employee[Full legal name of the employee]
Employee Title / Position
Effective Date[Effective date of this agreement]
Governing LawKentucky
Consideration
Signed After Employment Startedfalse
State-law basis false

Reference only — not part of this agreement.

Default assumes the agreement is signed at the outset of employment, where the job offer supplies the exchange. If the employee is already employed, switch this on and describe the independent new consideration provided.

New Consideration Provided
Confidentiality
Trade Secrets DurationPerpetual
Other Confidential Information Duration24 months
Employee Non-Solicitation
Duration24 months
Market benchmark 24 months · modal of 67 filed agreements

Reference only — not part of this agreement.

Kentucky sets no statutory cap on duration; enforceability turns on the holistic Kegel fair-protection reasonableness standard rather than a fixed number. 24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative, and counsel should size the term to the employer's actual protectable interest.

View more details in benchmark survey (as of July 3, 2026) →
Customer Non-Solicitation
Duration12 months
Market benchmark 12 months · modal of 67 filed agreements

Reference only — not part of this agreement.

Kentucky sets no statutory cap; a customer non-solicit maps directly onto the customer-goodwill interest and enforcement turns on proving contact with protected customers rather than meeting the statutory trade-secret threshold, so it is often the better instrument than a full non-compete. 12 months is the lighter side of the near-even 12/24-month split observed in benchmarked, publicly-filed employee agreements — a conservative duration counsel should size to the actual customer relationships protected.

View more details in benchmark survey (as of July 3, 2026) →
Non-Competition
Duration12 months
Market benchmark 12 months · modal of 70 filed agreements

Reference only — not part of this agreement.

Kentucky imposes no statutory cap on duration; courts weigh time and territory together against the employer's real protectable interest under the Kegel fair-protection standard, so there is no safe-harbor number. 12 months matches the modal non-compete term observed in benchmarked, publicly-filed employee agreements — a conservative default counsel should size to the actual role and market rather than copy from another form.

View more details in benchmark survey (as of July 3, 2026) →
Restricted Territorythe geographic area in which Employee provided services
State-law basis the geographic area in which Employee provided services

Reference only — not part of this agreement.

Tied to the employee's actual service area. Kentucky imposes no statutory cap on territory; a narrower area genuinely needed to protect customer relationships or confidential information is far easier to defend under the fair-protection standard than a statewide ban. Kentucky case law shows a court may supply a reasonable geographic limit when a covenant omits one, but at least on that authority only in the sale-of-business context, so an employment covenant should state the territory rather than rely on judicial rescue.

Competitive Business[Description of the business activities that constitute competition with the employer.]
Specified Competitors
No Business with Covered Customers
Duration12 months
Non-Investment
Duration12 months
Non-Disparagement
Duration24 months

Standard Terms

1. Defined Terms

“Competitive Business” means the business activities described in Cover Terms under Competitive Business.

“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee.

“Covered Customers” means customers, vendors, referral sources, and business partners with whom Employee had material contact or for whom Employee had responsibility during the 12 months before termination of employment.

“Covered Employees” means employees with whom Employee worked or whom Employee managed during the 12 months before termination of employment.

“Passive Public Holdings” means ownership of securities of a publicly traded company representing less than five percent of any class of such company's securities, and interests in diversified mutual funds, index funds, and exchange-traded funds that may hold securities of a Competitive Business.

“Protected Interests” means the legitimate business interests a Kentucky covenant may protect under the common-law fair-protection standard, namely Employer's Confidential Information, Employer's trade secrets as defined by the Kentucky Uniform Trade Secrets Act (KRS 365.880(4)), and Employer's goodwill in its customer, vendor, referral-source, and business-partner relationships, but not Employer's interest in avoiding ordinary competition.

“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.

“Restricted Territory” means the geographic area described in Cover Terms under Restricted Territory.

“Solicit” means to directly or indirectly contact, approach, induce, encourage, or provide Confidential Information to any person or entity for the purpose of diverting business away from Employer, but does not include responding to general advertisements or unsolicited inquiries not initiated by Employee.

“Trade Secrets” has the meaning given in the Kentucky Uniform Trade Secrets Act, KRS 365.880(4).

2. Recitals and Protectable Interests

Employer and Employee acknowledge that each restrictive covenant in this agreement is intended to protect one or more of Employer's Protected Interests and to impose no restraint greater than is required for that protection. The parties acknowledge that each covenant is meant to guard Employer's Confidential Information, trade secrets, and customer goodwill and not to eliminate ordinary competition, and that Employer would not provide Employee with access to these Protected Interests absent the protections in this agreement. Each covenant is intended to be reasonable in time, territory, and scope, to impose no undue hardship on Employee, and to cause no injury to the public.

Drafting Note The fair-protection standard

Kentucky has no general non-compete statute, so every covenant in the agreement stands or falls on the common-law fair-protection standard: a restraint holds only where, considering the subject, the nature of the business, the situation of the parties, and the circumstances of the case, it affords only fair protection to the employer's interests without interfering with the public interests or imposing undue hardship on the party restricted . Each covenant clears that standard on its own footing — a defensible restraint is not saved by being bundled with a shakier one — and valid consideration establishes only that a covenant is supported, not that it is reasonable. A recital that a restraint is reasonable or that breach causes irreparable harm supports the showing but does not replace it, and a notice or enforcement step built on a covenant a Kentucky court would refuse to enforce, for missing consideration or overbreadth, exposes the employer to a tortious-interference claim.

Drafting Note Protectable interest

A Kentucky non-compete that blocks competition disconnected from a protectable interest reaches beyond what the fair-protection standard allows: a restraint must guard specific confidential information, trade secrets, or customer goodwill rather than ordinary competition, and one untethered from a Protected Interest is exposed as an unlawful restraint on trade. Trade-secret protection runs on a separate track under the Kentucky Uniform Trade Secrets Act, so a confidentiality-plus-KUTSA strategy guards the trade-secret interest independent of any covenant, and a customer non-solicit — resting on contact with protected customers rather than the statutory trade-secret threshold — is often easier to enforce than a broad non-compete .

3. Timing, Consideration, and Employee Acknowledgements

The parties acknowledge that this agreement is supported by valid consideration and record the timing of execution relative to the start of employment in Cover Terms. If this agreement is signed at the outset of employment, the offer and commencement of employment is itself adequate consideration for the covenants. If Employee is an existing employee at the time of signing — that is, if the agreement is signed after employment began — the covenants are supported by independent, new consideration beyond continued at-will employment. For any such mid-employment covenant, the specific new value exchanged — for example a bonus, a raise, a promotion, or specialized training — is identified in Cover Terms under New Consideration Provided and was actually delivered to Employee. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement. Employee acknowledges that the restrictions in this agreement are reasonable and necessary to protect Employer's Protected Interests. This agreement is effective as of the Effective Date listed in Cover Terms.

Drafting Note Mid-employment consideration

A Kentucky covenant an existing employee signs draws no consideration from continued at-will employment alone: since Creech, a covenant an incumbent signs for nothing new fails for lack of consideration, because the employer forbears no legal right and the employee gains no new benefit, and a bare recital of consideration did not save the agreement . A covenant tied to identifiable new value documented at signing — a bonus, a raise, a promotion, or specialized training — carries its own exchange, while a covenant added later by amendment lands on a worker already employed and needs new consideration of its own; a routine refresh that gives the employee nothing new does not create an enforceable covenant.

4. Confidential Information and Trade Secret Protection

Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's obligations regarding trade secrets continue in perpetuity, for as long as the information remains a trade secret. Employee's obligations regarding other Confidential Information continue for the period specified in Cover Terms. This confidentiality obligation is intended to operate alongside, and independent of, any restrictive covenant, and does not restrict Employee's use of the general knowledge, skill, and experience Employee acquired during employment.

5. Permitted Disclosures and Protected Conduct

Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by applicable law, including Section 7 of the National Labor Relations Act (29 U.S.C. § 157); (d) testifying truthfully in legal proceedings; or (e) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.

6. Return, Deletion, and Certification of Company Property

Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request. The parties intend that these return, deletion, and certification mechanics support Employer's efforts to maintain the secrecy of its trade secrets.

7. Non-Solicitation of Employees

During the Restricted Period, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee. This restriction does not prohibit Employee from providing a professional reference upon request or from hiring a person who responds to a general advertisement not directed specifically at Employer's employees. This covenant reaches only Covered Employees during the Restricted Period and is no broader than necessary to protect Employer's workforce stability and goodwill.

8. Non-Solicitation of Customers, Vendors, Referral Sources, and Business Partners

During the Restricted Period, Employee must not Solicit the business of any Covered Customer. This covenant reaches only Covered Customers with whom Employee had material contact and is no broader than necessary to protect Employer's goodwill in its customer relationships.

9. No Business with Covered Customers

During the Restricted Period, Employee must not accept, service, or do business with any Covered Customer, regardless of whether Employee or the Covered Customer first initiated contact. This restriction is broader than non-solicitation because it applies even if the Covered Customer approaches Employee; it is sized to the goodwill it protects and reaches only Covered Customers with whom Employee had material contact.

10. Non-Competition

During the Restricted Period, Employee must not engage in, be employed by, consult for, or have an active ownership interest in any Competitive Business within the Restricted Territory. This covenant exists to protect Employer's Protected Interests — its Confidential Information, trade secrets, and customer goodwill — and not to restrain ordinary competition. The parties intend this covenant to afford only fair protection to Employer's interests, to impose no undue hardship on Employee, and to cause no injury to the public, with its time and territory sized to Employee's actual role and Employer's actual market. If Employer has identified specific competitors in Cover Terms under Specified Competitors, the parties intend this covenant to be understood and, if necessary, enforced as limited to those named competitors. Passive Public Holdings are permitted.

Drafting Note Duration and territory

A Kentucky court weighs duration and territory together against the employer's real market with no statutory cap and no safe-harbor number, so a term or radius copied from another form is measured against a market it was never sized to and is exposed as overbroad . The six-factor framework the Court of Appeals proposed during the Creech litigation is persuasive structure a trial court may consult rather than a checklist that guarantees enforcement, because the Kentucky Supreme Court resolved Creech on consideration alone and never adopted it. A non-compete confined to identified competitors is strong evidence that the restraint affords only fair protection, so a restraint keyed to the employee's actual role and the employer's actual footprint is far easier to defend than a long, open-ended, statewide ban.

11. Non-Investment

During the Restricted Period, Employee must not acquire or hold any active ownership interest in, serve as a director, officer, manager, or advisor to, or have material economic participation in any Competitive Business. This restriction primarily targets active or material ownership in private competitors. This covenant is a post-employment restraint drawn no broader than necessary to protect Employer's Protected Interests. Passive Public Holdings are permitted.

12. Non-Disparagement

During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, or exercising rights protected by law, including rights protected under Section 7 of the National Labor Relations Act.

13. Health Care Services Agency and Temporary Direct Care Staff

Notwithstanding any other provision of this agreement, if Employer is a health care services agency and Employee is temporary direct care staff contracted with or employed by the agency, this agreement does not, and may not, restrict in any manner Employee's employment opportunities, including through contract buy-out provisions or contract non-compete clauses (KRS 216.724). Any covenant in this agreement that would otherwise restrain Employee's employment opportunities is of no force or effect as to Employee, and the exclusion in this section controls over any contrary provision.

Drafting Note The temporary health-care staffing ban

Kentucky imposes no general ban on physician non-competes; an ordinary physician or clinician is measured by the same fair-protection reasonableness and consideration rules as any other employee. The one categorical statutory ban turns on a different class: where the employer is a health care services agency and the worker is temporary direct care staff contracted with or employed by the agency, KRS 216.724 voids any restriction on the worker's employment opportunities, including contract buy-out and non-compete clauses, and a non-complying contract is an unfair trade practice and void . The ban keys on the agency-and-temporary-staff relationship rather than a license or job title, and a 2023 amendment leaves the placement of permanent direct care staff outside it; no reasonableness analysis rescues a covenant the statute voids.

14. No Conflicting Obligations

Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.

15. Notice to Future Employers and Other Third Parties

Employer may disclose the existence and terms of this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach this agreement. Employee consents to this disclosure.

16. Extension of the Restricted Period During Breach

If Employee breaches any restrictive covenant in this agreement, Employer may seek to have the Restricted Period for that covenant extended by a period equal to the duration of the breach, so that Employer receives the benefit of the full duration of the restriction. Any extension under this section is a separate, breach-tied, bounded restraint; the parties do not intend an open-ended or indefinite extension, and do not assume that a court will revive an expired covenant.

17. Remedies

Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate. Employer may seek injunctive or other equitable relief in addition to any other remedies available at law, including relief under the Kentucky Uniform Trade Secrets Act, KRS 365.880 through 365.900, under which actual or threatened misappropriation of a trade secret may be enjoined independent of any covenant.

18. Enforceability and Severability

If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect. Each restrictive covenant in this agreement is intended to be independently enforceable, so that a court's refusal to enforce one covenant, or a court's decision to enforce a covenant only to a reasonable extent, does not affect the others.

19. Reformation

If any restraint in this agreement is found to be overbroad, Employer requests that a court reform or amend it to the extent necessary to render it enforceable rather than declining to enforce it. Each restrictive covenant in this agreement is drawn as a tiered, severable, reasonable restraint sized to the Protected Interests from the start and is intended to be enforceable as written rather than in reliance on judicial revision.

Drafting Note Reformation

Kentucky's blue-pencil power is discretionary, not a safety net: its courts are empowered to reform or amend overly broad non-compete restrictions, and Hodges shows the power reaching as far as supplying a missing geographic limit in the sale-of-a-business context, but reformation is not automatic and a court may decline to rewrite a covenant it views as overreaching . A covenant drafted as a tiered, severable, reasonable restraint from the start gives a court inclined to enforce workable text rather than a rescue request, while an abusively broad covenant risks being left unenforced.

20. Survival and Expiration of Each Covenant

Each restrictive covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms, and each covenant is separate and independently enforceable. Obligations under the Confidential Information and Trade Secret Protection section survive indefinitely to the extent they relate to trade secrets. All other provisions survive to the extent necessary to enforce rights that arose during employment.

21. Assignment and Successors

Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns. This agreement, including the restrictive covenants, binds and benefits the parties' respective successors and assigns.

22. Governing Law, Venue, and Dispute Process

This agreement is governed by the law listed in Cover Terms. A clause selecting Kentucky law is intended to be paired with a genuine connection to Kentucky and a covenant reasonable on its own terms, and the parties do not treat the choice-of-law clause as automatically dispositive. Disputes will be resolved in the courts of the Governing Law state, subject to non-waivable rights under applicable law. The parties intend that the governing-law and venue choices match where Employee actually lives and works.

Drafting Note Anchoring the choice-of-law clause

A clause selecting Kentucky law is strongest when it is paired with a genuine connection to Kentucky and a covenant reasonable on its own terms. Federal courts sitting elsewhere have honored a contractual Kentucky choice-of-law clause for a non-compete — one applying Kentucky law under the agreement's choice-of-law and forum-selection clause, another holding that applying Kentucky's blue-penciling rule was not repugnant enough to the forum's public policy to override the parties' choice . Those are federal trial-court rulings rather than binding Kentucky Supreme Court authority and remain subject to the forum's public-policy limit, so a choice-of-law clause paired with a real Kentucky connection carries weight while a bare label on an out-of-state relationship does not settle enforceability.

23. Entire Agreement, Amendment, Waiver, and Electronic Signatures

This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject. This agreement may be amended only in writing signed by both parties. A restrictive covenant added by amendment is supported by independent, new consideration of its own beyond continued employment. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.

Signatures

By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.

Employer

Employer: [Legal name of the employer]

Signature:

Signatory Name: [Full name of the authorized signatory signing for the employer]

Title: [Title of the authorized signatory signing for the employer]

Date:

Employee

Signature:

Print Name: [Full legal name of the employee]

Date:

Authored by OpenAgreements contributors. Kentucky-specific analysis informed by the quote-verified Kentucky practice note. Licensed under CC BY 4.0.