This bill amends the Kansas restraint of trade act to clarify the enforceability of certain restrictive covenants, stating that they will not be considered a restraint of trade if they meet specific criteria. The bill introduces provisions that allow for covenants related to non-solicitation of employees and customers to be conclusively presumed enforceable, provided they are limited in duration—no more than four years for owners and two years for employees—and pertain to material contact customers. Additionally, it specifies that arrangements deemed reasonable in light of the circumstances will not be considered unlawful under the act.

The bill also repeals the existing section of K.S.A. 2024 Supp. 50-163, thereby updating the legal framework surrounding restrictive covenants in Kansas. It emphasizes that the Kansas restraint of trade act should align with federal antitrust law interpretations and outlines exceptions to the act's applicability, including certain associations and franchise agreements. Overall, the legislation aims to provide clearer guidelines for businesses regarding the use of restrictive covenants while ensuring that they do not unreasonably restrain trade or commerce.

Statutes affected:
As introduced: 50-163