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SB 241 Kansas Senate · 2025-2026 Regular Session

Providing that restrictive covenants in certain contracts are enforceable and not considered a restraint of trade in certain circumstances.

SB 241 clarifies that certain restrictive covenants in business contracts - like non-compete agreements for employees or non-solicitation of customers - are enforceable and not considered illegal restraints of trade under Kansas law. It specifically states that covenants limiting employee solicitation or customer contact must not exceed 2 years (for employees) or 4 years (for business owners) and must apply only to "material contact" customers. The law creates a legal presumption that such agreements are valid if they meet these time and scope limits, reducing court uncertainty. This directly affects businesses and employees in Kansas by making these common contract terms more predictable and enforceable.
Issues: ✗ Labor & EmploymentOpposes Labor & EmploymentBill enforces non-compete agreements, limiting employee mobility and job opportunities post-employment, weakening worker protections by making restrictive covenants legally enforceable without strong safeguards.85% confidence
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Mar 2025
Senate Passage
Mar 2025
House Passage
Mar 2025
Signed into Law
Apr 2025
Introduced Feb 6, 2025 Signed Apr 10, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

As Amended by House Committee on Judiciary → Enrolled · 5 edits · Apr 10, 2025
MODERATE
This bill updates the Kansas restraint of trade act to clarify when non-solicitation agreements are legally enforceable. It adds specific rules for business owners and employees, setting a four-year limit for owner covenants and a two-year limit for employee covenants, while also adding new protections for owners regarding the sale of their business interests.
Scope change
The bill expands the scope of enforceable restrictive covenants by explicitly defining conditions under which owners and employees can be legally bound not to solicit competitors' staff or customers.
REQUIREMENT

Added a new subsection (c)(2) that conclusively presumes non-solicitation covenants between business owners and their entities are enforceable if they last no more than four years.

Added a new subsection (c)(3) that makes customer non-solicitation covenants by owners enforceable if limited to material customers and lasting no more than four years.

Modified subsection (c)(4) to clarify that employee non-solicitation covenants are enforceable if they protect trade secrets or last no more than two years.

Added a new subsection (c)(6) that makes covenants requiring owners to give prior notice before selling their business interest enforceable.

Added a new subsection (c)(7) allowing employees or owners to assert legal defenses against these covenants despite the presumption of enforceability.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
15
Key actions
10
Committee
4
Apr 10, 2025
Signed into law
Approved by Governor on Tuesday, April 8, 2025
upper
Mar 25, 2025
Upper · Passed
Concurred with amendments; Yea 38, Nay 0, Absent 2
upper
Mar 20, 2025
Lower · Passed
Emergency Final Action - Passed as amended; Yea 101, Nay 17, Absent 7
lower
Mar 20, 2025
Lower · Passed
Motion to advance to Emergency Final Action adopted
lower
Mar 20, 2025
Lower · Passed
Committee of the Whole - Be passed as amended
lower
Mar 20, 2025
Lower · Passed
Committee of the Whole - Committee Report be adopted
lower
Mar 19, 2025
Lower · Passed
Committee Report recommending bill be passed as amended by House Committee on Judiciary
lower
Feb 20, 2025
Committee
Referred to House Committee on Judiciary
lower
Feb 20, 2025
Introduced
Received and Introduced
lower
Feb 19, 2025
Upper · Passed
Emergency Final Action - Passed; Yea 40, Nay 0
upper
Feb 19, 2025
Upper · Passed
Committee of the Whole - Be passed
upper
Feb 17, 2025
Upper · Passed
Committee Report recommending bill be passed by Senate Committee on Judiciary
upper
Feb 7, 2025
Committee
Referred to Senate Committee on Judiciary
upper
Feb 6, 2025
Introduced
Introduced
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.