In a recent ruling by the Supreme Court of Kentucky, Creech v. Brown (June 19, 2014), the court affirmed that in Kentucky, noncompetition agreements must be supported by adequate consideration in order to be enforceable. The circumstance addressed by the court involved an employee who was presented with a noncompetition and confidentiality agreement after working for the employer for 16 years. The employee was offered no payment, no change in employment terms, and was not threatened with termination if he failed to execute the agreement. The court held that under this set of facts there was a lack of consideration and the court deemed the agreement unenforceable. The ruling makes clear that while consideration is necessary, it may be deemed from after-the-fact changes in employment circumstances.
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