Bill > SB241

This bill modifies Kansas law regarding restrictive covenants in business contracts, making certain types of agreements more easily enforceable and not considered a restraint of trade. Specifically, the bill establishes several categories of written covenants that are "conclusively presumed" to be legally valid, including agreements where: owners promise not to solicit or interfere with employees of a business for up to four years after ending their business relationship; owners agree not to solicit customers for competitive purposes within four years of leaving a business; employees agree not to recruit other employees or solicit customers for up to two years after leaving employment; and owners provide advance notice of intent to sell or terminate their ownership interest. The bill allows courts to modify overly broad covenants instead of invalidating them entirely, and it provides clear definitions for terms like "material contact customer" and "owner." The legislation aims to reduce uncertainty in business contracts by clarifying what types of restrictive agreements are considered reasonable and not harmful to trade. Importantly, the bill still allows employees and owners to assert legal defenses against such covenants, maintaining some flexibility in contract interpretation.

Justice

Judiciary (Senate)

https://kslegislature.gov/li/b2025_26/measures/sb241/