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Can a home care agency make caregivers sign a non-compete in Kentucky?
Last verified October 17, 2026 · All Kentucky resources
Generally enforceable if reasonable. Kentucky has no general non-compete statute. Courts enforce covenants that are reasonable in time, area and purpose. A statute bars non-competes and buy-out fees for temporary direct care staff placed by health care services agencies in facilities such as assisted living, long-term care and hospitals; it does not address home care agencies serving clients at home.
| Status | Generally enforceable if reasonable |
|---|---|
| Healthcare-specific rule | Health care services agencies may not restrict temporary direct care staff through non-compete or buy-out clauses, and may not require assisted living communities, long-term care facilities or hospitals to pay fees if they hire the temporary staff permanently (KRS 216.724). This does not cover contracts for permanent direct care staff. |
| Statute | KRS 216.724 (health care services agencies only) |
| Latest change | 2023-03-22 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
The general reasonableness standard comes from Kentucky case law summarized in a law firm survey.
General information, not legal advice.
Sources
More for Kentucky
Non-compete rules by state: other states
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