Jackson Lewis: Kentucky High Court Nixes Non-compete Supported Only By Continued Employment | Practical Law

Jackson Lewis: Kentucky High Court Nixes Non-compete Supported Only By Continued Employment | Practical Law

This Law Firm Publication by Jackson Lewis P.C. discusses the recent decision in Charles T. Creech, Inc. v. Brown, in which the Kentucky Supreme Court held that continued employment is not valid consideration for an employee's signing of a non-compete agreement. The court distinguished this case from prior state decisions in which other consideration was present aside from continued employment. The Creech decision does not affect non-compete agreements that are entered into when an individual is hired. An offer of at-will employment remains valid consideration and differs from an offer of continued employment. Finally, the court noted that in situations where continued employment is the only consideration for a non-compete, certain factors such as promotions or wage increases may make the agreement enforceable.

Jackson Lewis: Kentucky High Court Nixes Non-compete Supported Only By Continued Employment

by Jackson Lewis P.C.
Published on 02 Sep 2014Kentucky, United States
This Law Firm Publication by Jackson Lewis P.C. discusses the recent decision in Charles T. Creech, Inc. v. Brown, in which the Kentucky Supreme Court held that continued employment is not valid consideration for an employee's signing of a non-compete agreement. The court distinguished this case from prior state decisions in which other consideration was present aside from continued employment. The Creech decision does not affect non-compete agreements that are entered into when an individual is hired. An offer of at-will employment remains valid consideration and differs from an offer of continued employment. Finally, the court noted that in situations where continued employment is the only consideration for a non-compete, certain factors such as promotions or wage increases may make the agreement enforceable.