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Committee considers bill clarifying when restrictive covenants are not restraints of trade
Summary
Senate Bill 241 would amend KSA 50-1-63 (Restraint of Trade Act) to deem certain non-solicitation and confidentiality covenants enforceable if they meet defined criteria, including time limits of up to four years for owners and two years for employees; proponents said the bill provides clarity for businesses and courts.
The Committee on Judiciary heard testimony on Senate Bill 241, which would amend KSA 50-1-63 (the Restraint of Trade Act) to identify five categories of covenants that would not be considered restraints of trade if they meet specified criteria, Jason Thompson, the committee reviser, told members.
Thompson said the bill, which the reviser reported had passed the Senate by a recorded margin before arriving in the House, adds specific language about covenants not to solicit employees or customers, protections for confidential or trade-secret information, and time limits for enforceability.
"Subsection C is amended to add five types of covenants as not restraints of trade," Thompson said, noting that the proposed provisions also add definitions and that the bill would take effect July 1 if adopted.
Proponents told the committee the bill aims to provide clearer statutory…
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