Compliance Stuff

Kansas has long been an enforcement-friendly state for restrictive covenants, and it just got friendlier. A new state law, which took effect July 1, provides clearer guidelines and stronger protections for businesses seeking to enforce restrictive covenants . The new framework is especially helpful for employers that use customer or employee non-solicitation terms in their employment contracts . We’ll explain everything Kansas employers need to know about these changes, and what steps you should take next. Quick Background Earlier this year, Gov. Laura Kelly signed a bill ( SB 241 ) into law that made clarifying changes to the Kansas Restraint of Trade Act. The SB 241 updates took effect on July 1. Prior to July 1, the state law required a presumption of enforceability for restrictive covenants in employment agreements so long as they were “reasonable in view of all the facts and circumstances” and did not “contravene public welfare.” While this standard was enforcement-friendly, wheth...

Kansas Governor Laura Kelly recently signed a bill into law that deems certain nonsolicitation agreements with business owners and employees to be presumptively enforceable and not a restraint on trade. While generally consistent with existing Kansas case law, the legislation comes as many states are moving to limit or ban the use and enforceability of restrictive covenants in employment and reaffirms Kansas’s status as a relatively employer-friendly jurisdiction for the enforcement of well-tailored restrictive covenant agreements. Quick Hits Kansas recently enacted a law to make certain written agreements not to solicit customers or employees “conclusively presumed” to be enforceable. The legislation applies to nonsolicitation agreements between businesses and their owners, which are limited to four years after the end of their business relationship, and agreements with employees, which are limited to two years following employment. The legislation will take effect on July 1, 2025. Ka...

On April 9, 2025, Kansas Governor Laura Kelley signed into law Senate Bill No. 241 (the “Bill”), which amends the Kansas Restraint of Trade Act (the “Act”) to (a) create presumptions of enforceability for non-solicitation covenants meeting the Act’s requirements, and (b) require reformation of overbroad restrictive covenants .  The Act expressly excludes non-competition covenants from its scope.  K.S.A. § 50-163(d)(6).  The Bill amended Section 50-163 of the Act to clarify the scope of agreements and restrictive covenants covered by the Act.  Specifically, the Bill clarified that a non-solicit in which an employee agrees not to solicit employees shall be “conclusively presumed to be enforceable” where it: (a) seeks, on the part of the employer, to protect confidential trade secret business information or customer/supplier information,  or  (2) does not continue for more than two years following the employee’s employment.  K.S.A. § 50-163(c)(4). ...