UNOFFICIAL COPY 24 RS BR 2055
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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 as defined in KRS 14
216B.015 that employs individuals to provide health services. 15
(2) A health service provider shall not enter, enforce, or threaten to enforce a 16
covenant not to compete with any employee. 17
(3) An employee may bring a civil action against a former health service provider or 18
other person that attempts to enforce a covenant not to compete against him or 19
her in violation of this section. 20
(4) An action under this section shall be brought within two (2) years of the latter of 21
the date the: 22
(a) Covenant not to compete was signed; 23
(b) Employee learns of the covenant not to compete; 24
(c) Employment relationship is terminated; or 25
(d) Employer takes any step to enforce the covenant not to compete. 26
(5) The court shall have jurisdiction to void any covenant not to compete with an 27 UNOFFICIAL COPY 24 RS BR 2055
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employee and to order all appropriate relief, including an order enjoining the 1
conduct of any health service provider, awarding damages, and awarding 2
reasonable attorney fees and costs. 3
(6) A health service provider shall not discharge, threaten, or otherwise discriminate 4
or retaliate against an employee for bringing a civil action pursuant to this 5
section. 6
(7) Every health service provider shall post a copy of this section or a summary 7
approved by the Cabinet for Health and Family Services in the same location as 8
other employee notices required by state or federal law. 9
(8) Any health service provider who violates the provisions of this section shall be 10
assessed a civil penalty by the Cabinet for Health and Family Services of not less 11
than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for 12
each violation. 13
(9) Any covenant not to compete as defined in this section, in a contract or 14
agreement is void and unenforceable. 15