SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 241
As Recommended by Senate Committee on
Judiciary
Brief*
SB 241 would prohibit certain restrictive covenants from
being considered a restraint of trade pursuant to the Kansas
Restraint of Trade Act and would presume such covenants
are enforceable.
The bill would require the court to modify a restrictive
covenant if it is determined to be overbroad or not reasonably
necessary to protect the business interest of the business
seeking enforcement of the covenant, enforce the covenant
as modified, and grant only the relief reasonably necessary to
protect such interests.
Written Covenants
The bill would add provisions for the enforceability of
certain written covenants in which one party agrees not to
solicit, induce, persuade, encourage, direct, or otherwise
interfere with another party. The bill would also add a
provision for the enforceability of certain written Notice of
Termination agreements. The standards for determining
enforceability would differ based on the contents of the
agreement.
Owner Agrees Not to Solicit Employees
Such written covenants between a business entity and
an owner of the business entity would be enforceable if the
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
https://klrd.gov/ covenant does not continue for more than four years following
the owner’s business relationship with the business entity.
Owner Agrees Not to Solicit Business’s Customers
Such written covenants between a business entity and
an owner of the business entity would be enforceable if the
covenant is limited to material contact customers, as defined
by the bill, and does not continue for more than four years
following the end of the owner’s business relationship with
the business entity.
Employee Agrees Not to Solicit Entity’s Employees or
Owners
Such written covenants between a business entity and
employee of the business entity would be enforceable if:
●The employer seeks to protect confidential or
secret trade information or customer or supplier
relationships, goodwill or loyalty; or
●The covenant does not continue for more than two
years following employee’s employment.
Employee Agrees Not to Solicit Customers
Such written covenants between a business entity and
employee of the business entity would be enforceable if it is
limited to material contact customers and does not continue
for more than two years following the end of the employee’s
employment.
Owner Agrees to Prior Notice of Termination
Covenants in which an owner agrees to provide prior
notice of owner’s intent to terminate ownership in a business
entity would be presumed enforceable.
2- 241 Background
The bill was introduced by the Senate Committee on
Judiciary at the request of the Kansas Chamber.
Senate Committee on Judiciary
In the Senate Committee hearing, a representative of
the Kansas Chamber provided proponent testimony,
generally stating the bill would promote workforce stability
and client relationships, and protect employees and owners
from overly broad restrictive covenants.
No other testimony was provided.
Fiscal Information
According to the fiscal note provided by the Division of
the Budget on the bill, the Office of Judicial Administration
states enactment of the bill would have a negligible fiscal
effect on operations for the Judicial Branch.
Judiciary; restrictive covenants; restraint of trade
3- 241