Kansas 2025-2026 Regular Session

Kansas Senate Bill SB241

Introduced
2/6/25  
Refer
2/7/25  
Report Pass
2/17/25  
Engrossed
2/20/25  
Refer
2/20/25  
Report Pass
3/19/25  
Enrolled
4/10/25  

Caption

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

Impact

The impact of SB241 on state laws will be significant, as it alters the legal landscape regarding how restrictive covenants are treated in Kansas. By establishing clear guidelines around enforceability and the definition of reasonable restraints, the bill aims to reduce ambiguity that has previously surrounded such agreements. This change is expected to empower businesses to protect their interests more effectively, thereby potentially enhancing competition and stability within various industries through competitive agreements.

Summary

Senate Bill No. 241 proposes amendments to the Kansas Restraint of Trade Act, specifically concerning the enforcement of restrictive covenants within business contracts. The bill clarifies that certain covenants will not be considered a restraint of trade under specified conditions, thereby increasing their enforceability. Covenants outlined in the bill can include those preventing the solicitation of employees or customers, provided they are reasonable and do not extend beyond specified time limits following the end of a business relationship.

Sentiment

The sentiment surrounding SB241 appears to be largely positive, particularly among business groups and proponents who view it as a necessary adaptation to modern business practices. Their argument is that it will help in creating a more favorable environment for business operations, enabling them to secure their workforce and clientele. However, the bill has also received some scrutiny from those concerned about the potential overreach in limiting employee mobility and the risks of creating overly restrictive conditions that could stifle competition.

Contention

Notable points of contention in the discussions around SB241 relate to the balance between protecting business interests and ensuring fair labor practices. Critics express the need for caution in how restrictive covenants are applied, fearing that they could unfairly limit employees' opportunities for advancement and mobility. As the bill progresses, the challenge will be in ensuring that the provisions serve to foster healthy competition without undermining the rights and freedoms of workers in the state.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2562

Enacting the protect vulnerable adults from financial exploitation act, authorizing the real estate commission to issue cease and desist orders in under certain circumstances and regulating contract for deed transactions.

KS HB2598

Substitute for HB 2598 by Committee on Commerce, Labor and Economic Development - Authorizing the Kansas real estate commission to issue cease and desist orders, prohibiting dealing in assignable contracts for certain residential real estate and providing that certain violations thereof are subject to the Kansas consumer protection act, regulating contract for deed transactions, authorizing recording of contract for deeds or affidavits of equitable interest, listing deceptive practices constituting violations of the consumer protection act, requiring notice to the buyer of default and allowing buyers to cure such default.

KS HB2172

Enacting the uniform trust decanting act, authorizing modification of a noncharitable irrevocable trust to provide that the rule against perpetuities is inapplicable, providing that the Kansas uniform statutory rule against perpetuities is inapplicable to trusts under certain circumstances and modifying the definition of resident trust in the Kansas income tax act.

KS HB2376

Prohibiting the recording of any restrictive covenant that violates the Kansas act against discrimination and authorizing the removal of such covenants from existing documents, and prohibiting city or county laws prohibiting discrimination that are more restrictive than state law.

KS SB495

Modifying certain terms, definitions, deadlines and provisions contained in the uniform consumer credit code and transferring certain mortgage provisions from the uniform consumer credit code to the Kansas mortgage business act.

KS HB2812

Modifying certain terms, definitions, deadlines and provisions contained in the uniform consumer credit code and transferring certain mortgage provisions from the uniform consumer credit code to the Kansas mortgage business act.

KS HB2560

Enacting the Kansas money transmission act and the Kansas earned wage access services act, providing when applications under the state banking code are considered abandoned or expired, allowing an originating trustee to have such trustee's principal place of business outside of Kansas, authorizing any person to become a depositor or lessor of a safe deposit box, providing methods in which bank deposits may be withdrawn by a depositor and prohibiting banks from requiring a cosigner for an account of a child in the custody of the secretary for children and families, secretary of corrections or a federally recognized Indian tribe.

KS HB2473

Reconciling multiple amendments to certain statutes.

KS SB224

Enacting the Kansas protection of pensions and businesses against ideological interference act, relating to ideological boycotts involving environmental, social or governance standards, requiring KPERS to divest from and prohibiting state contracts or the deposit of state moneys with entities engaged in such boycotts as determined by the state treasurer and prohibiting discriminatory practices in the financial services industry based on such boycotts.

KS HB2404

Enacting the Kansas protection of pensions and businesses against ideological interference act, relating to ideological boycotts involving environmental, social or governance standards, requiring KPERS to divest from and prohibiting state contracts or the deposit of state moneys with entities engaged in such boycotts as determined by the state treasurer and prohibiting discriminatory practices in the financial services industry based on such boycotts.

Similar Bills

CA AB878

Juveniles: restraints.

NH SB393

Relative to the use of restraints on pregnant women in the custody of a state or county correctional facility.

CA AB2657

Pupil discipline: restraint and seclusion.

IL HB5631

MHDDC-LETHAL RESTRAINTS-PROHIB

CA AB216

School safety: Pupil and Staff Safety Pilot Program.

TX SB751

Relating to the use of restraints in state schools.

CO HB1248

Protect Students from Restraint & Seclusion Act

NH HB491

Relative to prohibiting the use of the prone restraint for minors.