SB 234 – Kentucky

Status: In Process
Year Introduced: 2025
Link: https://apps.legislature.ky.gov/record/25RS/sb234.html

This bill creates new regulations regarding non-compete clauses in Kentucky, fundamentally making them unenforceable for most workers except senior executives. The bill defines numerous terms, including what constitutes a “non-compete clause” as any employment term that prevents a worker from seeking new work or operating a business after leaving their current job. For non-senior executive workers, it will be considered an unfair business practice to create, enforce, or even represent the existence of a non-compete clause. For senior executives (defined as those in policy-making positions earning at least $151,164 annually), non-compete clauses entered into after the bill’s effective date will also be unenforceable. The bill requires employers to provide clear, written notice to workers informing them that their existing non-compete clauses cannot be legally enforced, which can be delivered via hand delivery, mail, email, or text message. There are exceptions for non-compete clauses related to genuine business sales and those with legal claims that accrued before the bill’s effective date. The bill does not prevent other legal actions under state laws and is designed to be interpreted to maintain maximum effect even if parts of it are found invalid.


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