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Did Not Advance

Kentucky Bans Non-Compete Agreements for Low-Wage Workers and Independent Contractors

Original title: AN ACT relating to contracts.

Last action · March 9, 2026: to Economic Development & Workforce Investment (H)Sponsor: Pamela Stevenson

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Kentucky House Bill 813 prohibits employers from entering into, enforcing, or threatening to enforce non-compete agreements with covered low-wage employees earning less than $2,000 weekly, interns, students, apprentices, trainees, and independent contractors, effective upon passage for newly signed agreements. Covered individuals may sue former employers for damages, legal fees, and court orders voiding the agreement, while employers face civil penalties ranging from $1,000 to $10,000 for violations or retaliating against workers who file suit.

Why it matters

Low-wage workers, interns, and independent contractors gain the legal right to challenge restrictive covenants without fearing employer retaliation, while employers face financial penalties up to $10,000 per violation and mandatory posting requirements.

Background
  • Non-compete agreements have traditionally been governed by state common law and varying judicial standards rather than statutory bans for low-wage earners. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Covered employees

Workers earning under $2,000 weekly, interns, and independent contractors gain protection from non-compete agreements and the right to sue employers who attempt to enforce them.

Directly affected

Employers

Employers are prohibited from using non-compete agreements for covered workers, must post workplace notices, and face increased civil penalties for non-compliance.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who is considered a covered employee under this bill?
A covered employee is an individual whose average weekly earnings are less than $2,000, including interns, students, apprentices, trainees, and independent contractors.
What penalties do employers face for violating the non-compete ban?
Employers who violate the non-compete restrictions or retaliate against employees face civil penalties of $1,000 to $10,000 per violation, in addition to potential court-ordered damages and attorney fees.
What is the deadline for filing a civil action regarding an illegal non-compete?
An action must be brought within two years of the date the covenant was signed, the employee learned of it, the employment relationship terminated, or the employer took enforcement steps, whichever is later.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

2 actions
  1. Mar 9, 2026HouseCommittee
    to Economic Development & Workforce Investment (H)
  2. Mar 2, 2026HouseIntroduced
    introduced in House to Committee on Committees (H)

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Expansion of Worker Protections

The bill significantly broadens statutory labor regulations by extending non-compete prohibitions and civil remedies directly to independent contractors, interns, and lower-income earners.

Connected Entities

General Assembly, Education and Labor Cabinet
OrganizationGeneral Assembly“Legislative body enacting the bill”Map →
OrganizationEducation and Labor Cabinet“Cabinet employing labor inspectors”Map →

Sources

Open source document

apps.legislature.ky.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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