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, whether a restrictive covenant was “reasonable” was ultimately left for judges to decide – creating uncertainty over which covenants might be upheld in court.
Overview of New Kansas Law
The SB 241 updates made two key changes, which are now in effect:
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