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Kansas Updates

Restraint of Trade Act
Recently Governor Kelly signed Senate Bill No. 241 into law, amending the Kansas Restraint of Trade Act. This amendment clarifies which business contracts are not considered an unreasonable restraint of trade or against public welfare. 
 
Key Changes:
 
  • Non-solicitation agreements: The law creates presumptions of enforceability for employee and customer non-solicitation covenants meeting specific requirements, including a two year duration limit, where previously the Act's coverage of such provisions was unclear. 
  • Mandatory reformation: If a covenant is deemed overbroad or unenforceable, Kansas courts are required to modify and enforce the covenant as modified. 
  • Effective date: The amended Act takes effect on July 1, 2025
  • "Pro-business" law: The Kansas Chamber has praised the law as "pro-business," enhancing employers' ability to protect workforce stability and client relationships. 
 
Existing Regulations:
 
  • Kansas courts already uphold protective covenants that are reasonable and not against public welfare.
  • Courts assess reasonableness by considering factors like: protecting legitimate business interests, burden on the employee, public welfare impact, and reasonable duration and geographic scope.
  • The "reasonableness test" will continue to apply to protective covenants not specifically covered by the new law's presumptions, including non-compete agreements.
  • The new law mandates flexible enforcement by courts for agreements falling within the specific limitations.
 
For questions on business contracts and restraint of trade reach out to your legal counsel as needed.

 

Bill Text: KS SB241 | 2025-2026 | Regular Session | Enrolled | LegiScan


 

Previous Updates

New Vaccine Law

The new law requires that, if a Kansas employer imposes a COVID vaccination requirement, the employer shall exempt an employee if the employee submits a written waiver request to the employer stating that complying with such requirement would either (1) endanger the life or health of the employee or an individual who resides with the employee, or (2) violate the employee's sincerely held religious beliefs. The law defines religious beliefs to include, but not limited to, "theistic and non-theistic moral and ethical beliefs as to what is right and wrong that are sincerely held with the strength of traditional religious views." In addition, the new law requires that employers shall grant an exemption to vaccine requirements based on sincerely held religious beliefs "without inquiring into the sincerity of the request." Employees must provide a written statement by a physician, or similar practitioner, supporting a request for medical exemption.

 

The law also provides that employees who lose their job for failing to comply with an employer's vaccine requirement, and assert that their employer violated the new provisions of the law, will not be deemed disqualified from receiving unemployment benefits on grounds that the employee violated an employee work rule in refusing to be vaccinated. Unemployment benefits for these employees can be paid retroactively during the period September 9, 2021 through the effective date of the law.

 

Learn more here.

 

 

Kansas City Hairstyle Discrimination Ban

Kansas City joins the growing trend of hairstyle discrimination bans and has expanded its anti-discrimination law to include hairstyles and hair texture. Effective November 1, Kansas City's CROWN Act will consider appearance policies that prohibit, limit or otherwise restrict an individual's natural hair type historically associated with a particular race to be unlawful discrimination.