Bill > HB690

This bill creates new restrictions on non-compete agreements in Kentucky, focusing on protecting lower-wage workers. Specifically, the bill defines a "covenant not to compete" as any agreement that restricts an employee's ability to work for a competitor after leaving their job, and a "covered employee" as someone earning less than $2,000 per week, including interns, students, apprentices, and independent contractors. The bill prohibits employers from requiring covered employees to sign non-compete agreements or attempting to enforce such agreements. Employees who are subject to an improper non-compete agreement can bring a civil action within two years, during which a court can void the agreement, provide injunctive relief, award damages, and cover attorney fees. The bill also protects employees from retaliation for challenging a non-compete agreement and requires employers to post information about these new restrictions in their workplace. Additionally, the bill amends existing labor law to establish civil penalties for employers who violate these new provisions, with potential fines ranging from $1,000 to $10,000 per violation. The goal of the legislation is to provide greater employment flexibility and protect workers from overly restrictive employment contracts.

Business and Industry

https://apps.legislature.ky.gov/record/25RS/hb690.html