This 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 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 be in writing, limited in duration (not exceeding four years for owners and two years for employees), and reasonable in scope to protect legitimate business interests. The bill also outlines that if a covenant is deemed overbroad, courts have the authority to modify it to ensure it aligns with the law.

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 clarifies that the Kansas restraint of trade act does not apply to certain associations and agreements, such as those governed by specific federal acts or related to electric cooperatives and credit unions. The bill aims to reduce ambiguity in the application of the law and ensure that reasonable business practices are upheld without being deemed unlawful restraints of trade.

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