Restrictions to prevent competition by a former employee are held valid when they are reasonable and necessary to protect the interests of the employer. For example, a provision in an employment contract which prohibited an employee for two years from calling on any customer of the employer called on by the employee during the last six months of employment would generally be valid. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area. For example, if a company only operated within one city, and the covenant not to compete provided that an employee of the company could not solicit business within 100 miles of the city if he/she ever left the employ of the company, such an agreement would be unreasonable as to its geographical area. The company had no need to be protected regarding such a large geographical area.
Kentucky Employment Agreement with Director of Day Care or Child Care Center including Non-Competition Provision Introduction: In the state of Kentucky, employers in the day care or child care center industry often require Employment Agreements with their director-level employees to outline the terms and conditions of their employment. These agreements not only specify job responsibilities, compensation, and benefits but also incorporate non-competition provisions to protect the center's interests. This article will provide a detailed description of what a Kentucky Employment Agreement with Director of Day Care or Child Care Center including Non-Competition Provision entails and highlight any possible variations. 1. Content of the Employment Agreement: The Kentucky Employment Agreement with a Director of Day Care or Child Care Center encompasses several crucial components: a. Identification of Parties: The agreement identifies the employing child care center, its address, and the director. It also includes their respective roles and any additional parties involved. b. Job Description and Responsibilities: The agreement includes a detailed description of the director's position, duties, and areas of responsibility. This section ensures clarity regarding the director's role and establishes expectations. c. Employment Terms: The agreement specifies the employment duration, such as whether it is an indefinite period or a fixed-term contract. It also covers the effective date and any probationary period, if applicable. d. Compensation and Benefits: Clear details about the director's salary, bonuses, incentives, commission, and any other financial benefits are outlined. This section may include information on health insurance, vacation or leave entitlement, retirement plans, and other benefits. e. Non-Disclosure and Confidentiality: A vital aspect of the agreement, this clause addresses the protection of proprietary information belonging to the child care center. It prohibits the sharing or use of sensitive information outside the scope of employment. f. Non-Competition Provision: This provision restricts the director's ability to engage in or work for competing child care centers within a specific geographic area and timeframe after termination or resignation. It safeguards the center's business interests and ensures that the director does not exploit the center's clientele, trade secrets, or sensitive information while working for a competitor. g. Termination and Severance: This section defines the circumstances under which the agreement may be terminated, such as voluntary resignations, terminations for cause, or non-renewal of a fixed-term contract. It may also outline severance pay or benefits, if applicable. 2. Types of Kentucky Employment Agreements with Director of Day Care or Child Care Center including Non-Competition Provision: a. Standard Employment Agreement: This is the most common type of agreement used between day care or child care centers and their directors. It includes all the basic elements mentioned above, including a non-competition provision. b. Fixed-Term Employment Agreement: Some directors may be employed on a contract basis for a specific duration. This agreement outlines the fixed-term period and includes provisions for renewal or non-renewal. c. Part-Time Employment Agreement: This type of agreement caters to directors who work less than the standard full-time hours. It covers compensation, responsibilities, and may include a modified non-competition provision. d. Independent Contractor Agreement: In certain cases, a director in a child care center may be considered an independent contractor rather than a traditional employee. This type of agreement specifies the nature of the relationship, payment terms, and any limitations on competition. Conclusion: Kentucky Employment Agreements with Directors of Day Care or Child Care Centers, including Non-Competition Provisions, play a vital role in establishing a clear understanding of the director's employment terms and ensuring the protection of the center's interests. Employers should consult legal professionals to create customized agreements that comply with Kentucky employment laws and regulations while safeguarding their specific business needs and concerns.