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What Is a Kansas Non-Compete Agreement?

In Kansas, a non-compete agreement is a document relying on restrictive covenants that companies and businesses will use to guard themselves against unfair competition. Employers often request that new hires sign a non-compete agreement at the beginning of the employment relationship which prevents them from working with competing companies for a given period of time after their employment within a specific geographical range. The purpose of non-competition agreements is to protect the interests of the employer by legally protecting their sensitive information such as their customer contacts, intellectual property, and other legitimate business interests.

Such agreements may be their own stand-alone contracts or they may be part of an employment contract. To determine the enforceability, Kansas business owners should seek legal advice from a lawyer who practices employment law. If the business has branches in Missouri or if it is close to Missouri and its employees or independent contractors live in Missouri, it could be beneficial to also talk with a law firm that is licensed both in Kansas and Missouri. The covenant not to compete would need to conform with laws from both states, not be overbroad, and not violate the public policy of either location.

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Applicable State Laws - None

Although Kansas has no laws that govern non-compete agreements, there are restrictions. For example, non-compete agreements must be reasonable in their scope. They must have a reasonable time limit as well as a reasonable geographic restriction. It cannot create an undue burden on the former employee, either.

Protect your Kansas business by also using a Kansas non-disclosure agreement form. Download a Kansas non-disclosure agreement form now!

How to Write a Kansas Non-Compete Agreement

To write a Kansas non-compete agreement, include the following clauses:

  • Purpose. This clause explains the purpose of the non-complete: to protect the confidential information of your business. It also identifies the parties and their roles and includes the effective date for the contract. It may also state that the term "confidential information" may be referred to as "proprietary information."
  • Non-compete. This clause provides the time restriction, geographic area restriction, restriction on general and specific business activities, restrictions on working for general or specific competitors, restrictions on general and specific activities, restrictions on soliciting clients or customers, and restrictions on soliciting employees.
  • Time period. This clause may restate the time restriction. It also explains when the time period begins. It may begin either at the time the employment relationship begins or when it ends.
  • Purchase option. This clause explains whether your business allows the signing party to buy out their obligations. If so, the specific amount they must pay is documented in this clause.
  • Jurisdiction. This clause explains that Kansas laws will govern the agreement.
  • Confidential information. This clause states that the term "confidential information" as referred to throughout the agreement means any and all technical and non-technical information provided by your business that includes, and is not limited to, any data or other proprietary information related to products, inventions, plans, methods, processes, developmental products, experimental products, intellectual property, software, databases, customer lists, supplier lists, vendor lists, marketing methods, reports, business plans, financial information, or other information related to your business or any of your clients, consultants, customers, or licensees disclosed to the signing party under the terms of the agreement.
  • Permitted disclosure. This clause explains which disclosures of information are permitted or when confidential information will no longer be considered confidential. For example, when information is made public through no fault of the signing party, when the signing party discovers confidential information on their own and through no fault of another party, or when your business provides written consent for the release of certain information to the public.
  • Confidentiality. This clause states that the signing party acknowledges that the information they have access to is confidential and that they agree they will not directly or indirectly disclose it to another party without the written consent of the business. They also agree they will not use the information for any reason except to further the business without first receiving the written consent of the business.
  • Consultants and employees bound. This clause states that the agreement binds both consultants and employees to keep the confidential information in the strictest of confidence and that they are on a need-to-know basis for the information.
  • Return of materials. This clause states that when the non-compete agreement is terminated or when otherwise requested by your business, the signing party must promptly return all documents and other tangible material that represents the confidential information of the business as well as any copies that exist. It also states that your business will notify the signing party of any discovery of any loss or unauthorized disclosure of the confidential information.
  • Remedies. This clause explains the legal remedies that your business is entitled to pursue according to Kansas law if the signing party breaches the agreement. Examples include the recovery of court costs, the recovery of reasonable attorney fees, the award by a Kansas court of a temporary restraining order or preliminary injunction against the unauthorized use of the information, etc., as well as any other remedies available under Kansas law or available as a means of equity.
  • Choice of law. This clause is particularly important if you have branches in Missouri or employees who commute from Missouri. It states that the parties agree that Kansas law will govern the agreement.
  • Entire agreement. This final clause states that the entire agreement may be amended in writing, but only if both parties sign the amendment.

The parties must sign and print their names. The signatures must be dated. Each party should receive a copy of the executed document for their records.

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