An employment contract may state the amount of liquidated damages to be paid if the contract is breached. Upon a party's breach, the other party will recover this amount of damages whether actual damages are more or less than the liquidated amount.
If the agreed-upon liquidated damage amount is unreasonable, the Court will hold the liquidated damage clause to be void as a penalty. If the Court declares the clause to be void, the employer would have to prove the actual damages.
The Kentucky Liquidated Damage Clause in an Employment Contract Addressing Breach by Employee serves as a crucial provision to protect employers in the event of a breach by an employee. This clause, recognized by Kentucky law, allows employers to seek compensation for specific damages incurred as a result of the employee's breach of contract. The liquidated damages' clause represents a predetermined amount of compensation that the employee agrees to pay the employer as an estimation of potential damages sustained. Different types of Kentucky Liquidated Damage Clauses in an Employment Contract Addressing Breach by Employee may include: 1. Non-Compete Agreement Damages: This type of clause prohibits an employee from engaging in activities that directly compete with the employer's business. In the event of breach, the liquidated damages' clause would hold the employee liable for a specific amount due to the potential harm caused by their competitive actions. 2. Confidentiality Agreement Damages: Confidentiality agreements typically require employees to maintain the privacy and confidentiality of sensitive information or trade secrets of the employer. If the employee breaches this provision, the liquidated damages' clause can be invoked to compensate the employer for any damages resulting from the unauthorized disclosure or misuse of such confidential information. 3. Non-Solicitation Agreement Damages: Non-solicitation clauses prevent employees from soliciting the employer's clients, customers, or other employees for a certain period after leaving employment. If the employee violates this provision, the liquidated damages' clause would allow the employer to seek compensation for the potential loss of business opportunities or interference caused by the employee's solicitation. 4. Training Cost Recovery Damages: In some cases, employers invest significant resources in training employees to develop specific skills or knowledge crucial to their business operations. The liquidated damages' clause can be used to recover a predetermined amount from the employee if they breach the employment contract shortly after completing the employer-funded training. Employers should carefully consider the specific circumstances of their business and consult with legal professionals to ensure that the Kentucky Liquidated Damage Clause in their Employment Contract Addressing Breach by Employee is clear, enforceable, and aligned with state laws.
