UNOFFICIAL COPY 24 RS BR 1005
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AN ACT relating to health service providers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 216B IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Covenant not to compete" means a covenant or agreement, including a 6
provision of a contract of employment, between a health service provider 7
and employee that restrains, prohibits, or otherwise restricts an employee's 8
ability, following the termination of the employee's employment, to compete 9
with his or her former employer; 10
(b) "Employee" means an individual employed by, contracted with, or 11
otherwise receiving financial renumeration from a health service provider 12
for providing health services; and 13
(c) "Health service provider" means a health facility or service as defined in 14
KRS 216B.015 that employs individuals to provide health services. 15
(2) A health service provider that receives ten percent (10%) or more of its annual 16
total gross revenue from state general funds shall not enter into, enforce, or 17
threaten to enforce a covenant not to compete with any employee. 18
(3) An employee may bring a civil action against a former health service provider or 19
other person that attempts to enforce a covenant not to compete against him or 20
her in violation of this section. 21
(4) An action under this section shall be brought within two (2) years of the latter of 22
the date the: 23
(a) Covenant not to compete was signed; 24
(b) Employee learns of the covenant not to compete; 25
(c) Employment relationship is terminated; or 26
(d) Employer takes any step to enforce the covenant not to compete. 27 UNOFFICIAL COPY 24 RS BR 1005
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(5) The court shall have jurisdiction to void any covenant not to compete with an 1
employee and to order all appropriate relief, including an order enjoining the 2
conduct of any health care provider, awarding damages, and awarding 3
reasonable attorney fees and costs. 4
(6) A health service provider shall not discharge, threaten, or otherwise discriminate 5
or retaliate against an employee for bringing a civil action pursuant to this 6
section. 7
(7) Every health service provider shall post a copy of this section or a summary 8
approved by the Cabinet for Health and Family Services in the same location as 9
other employee notices required by state or federal law. 10
(8) Any health service provider who violates the provisions of this section shall be 11
assessed a civil penalty by the Cabinet for Health and Family Services of not less 12
than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for 13
each violation. 14
(9) Any covenant not to compete in effect before the effective day of this Act shall not 15
be renewed upon its expiration. 16