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KS SB241
Bill
AI Summary
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Amends K.S.A. 2024 Supp. 50-163 to establish that certain restrictive covenants in business contracts are conclusively presumed enforceable and not a restraint of trade under Kansas law
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Owner non-solicitation covenants (preventing solicitation of employees or customers) are enforceable for up to 4 years after the owner's business relationship ends, provided customer restrictions are limited to "material contact customers"
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Employee non-solicitation covenants are enforceable for up to 2 years after employment ends when protecting confidential information, trade secrets, or customer relationships, with customer restrictions limited to material contact customers
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Courts must modify overbroad covenants rather than void them entirely, enforcing the modified covenant and granting only relief reasonably necessary to protect legitimate business interests
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Franchise agreements and covenants not to compete are explicitly excluded from the Kansas restraint of trade act's prohibitions
Legislative Description
Providing that restrictive covenants in certain contracts are enforceable and not considered a restraint of trade in certain circumstances.
Last Action
Senate Approved by Governor on Tuesday, April 8, 2025
4/10/2025