The bill amends K.S.A. 2024 Supp. 50-163 to clarify the enforceability of certain restrictive covenants under the Kansas restraint of trade act. It establishes that specific agreements, such as those preventing owners or employees from soliciting customers or interfering with employment relationships, are not considered a restraint of trade if they meet certain criteria. These covenants are presumed enforceable if they are reasonable in duration—no more than four years for owners and two years for employees—and are designed to protect legitimate business interests. The bill also outlines the definitions of "employee," "material contact customer," and "owner" to provide clarity on who is covered under these provisions.

Additionally, the bill repeals the existing section of K.S.A. 2024 Supp. 50-163, thereby consolidating the legal framework regarding restrictive covenants and their enforceability. It ensures that the Kansas restraint of trade act aligns with federal antitrust law interpretations while allowing for modifications to overbroad covenants. The act will take effect upon publication in the statute book, reinforcing the state's commitment to balancing business interests with fair trade practices.

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