This bill amends the Kansas restraint of trade act, specifically K.S.A. 2024 Supp. 50-163, to clarify the enforceability of certain restrictive covenants in business contracts. It establishes that specific agreements, such as those preventing owners or employees from soliciting or interfering with a business's employees or customers, are not considered a restraint of trade if they meet certain criteria. For instance, covenants must not exceed four years in duration for owners and two years for employees after their business relationship ends. The bill also presumes these covenants to be enforceable, provided they are reasonable and do not contravene public welfare.

Additionally, the bill outlines exceptions to the Kansas restraint of trade act, ensuring that it does not apply to various associations and agreements, including those governed by specific federal acts and franchise agreements. The existing section of K.S.A. 2024 Supp. 50-163 is repealed, and the new provisions are intended to reduce ambiguity in the application of the law regarding business contracts. The act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 50-163
As Amended by House Committee: 50-163
Enrolled: 50-163