Kansas Non-compete Agreement Template

A Kansas non-compete agreement is a written contract in which a worker promises not to compete with a business, or solicit its customers or staff, for a set time. Kansas non-compete law, found in Kan. Stat. Ann. § 50-163, treats an agreement as lawful when it is a reasonable restraint of trade or commerce.[1] Read the rules below, then create a free non-compete agreement online.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Kansas law. If you notice an error or outdated information, please contact us.

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What Is a Kansas Non-Compete Agreement?

It is a contract between a business and a worker. Employers often ask a new hire to sign it before the first day of work. The worker agrees not to use confidential information or trade secrets to harm the business.

Here are common examples of what an employer wants to protect with a Kansas non-compete agreement:

  • Trade secrets
  • Confidential business information
  • Customer contacts
  • Referral sources
  • Goodwill
  • Reputation
  • Special training

Need a different form? See the non-compete template for employees, the non-compete template for independent contractors, or a confidentiality agreement.

Kansas Non-Compete Law: The Reasonable Restraint Standard

Kansas has a statute for these covenants, Kan. Stat. Ann. § 50-163, part of the Kansas restraint of trade act. An agreement is not unlawful, void, prohibited or wrongful under the act if it is a reasonable restraint of trade or commerce.[1]

The act is construed in harmony with ruling judicial interpretations of federal antitrust law by the United States Supreme Court, except where the statute provides otherwise. In plain words, the act is read in line with the main U.S. Supreme Court decisions on federal antitrust law.[1]

In practice, ask for no more restriction than you need to protect trade secrets and confidential information. Keep the limits on scope and time reasonable.

Under Section 50-163, a restraint is reasonable if it is reasonable in view of all the facts and circumstances of the particular case and does not contravene public welfare, which means it must not work against the public good. The test is not limited to trade secrets and confidential information, and a court modifies an overbroad covenant that the statute does not presume enforceable, then enforces it only as modified.[1]

Time Limits for Kansas Non-Solicitation Covenants

A Kansas non-solicitation agreement is a written covenant not to solicit a business's customers or staff. The statute sets time limits for four kinds. For employees the limit is two years after the employment ends. For owners it is four years after the owner's business relationship with the business entity ends.[1]

Covenant in writingSigned byTime limit
Not to solicit the business's employees or ownersEmployer and employeeTwo years after the employment ends, or it protects confidential information, customer relationships or goodwill
Not to solicit or service the business's customersEmployer and employeeTwo years after the employment ends
Not to solicit the business's employees or ownersBusiness entity and ownerFour years after the owner's business relationship ends
Not to solicit or service the business's customersBusiness entity and ownerFour years after the owner's business relationship ends

The law treats a covenant that meets these conditions as enforceable and not a restraint of trade.[1]

Conditions for Employee and Owner Covenants

Each covenant must be in writing and between the right parties. A customer covenant must also be limited to material contact customers. The lists below show the conditions for employees and for owners.[1]

Employees

  • Customers. The covenant is between the employer and the employee, is limited to material contact customers, and does not continue for more than two years following the end of the employee's employment with the employer.
  • Employees and owners. The covenant is between the employer and one or more employees. It either seeks to protect confidential or trade secret business information, customer or supplier relationships, goodwill or loyalty, or does not continue for more than two years following the employee's employment.

Owners

  • Employees and owners. The covenant is between the business entity and an owner. It does not continue for more than four years following the end of the owner's business relationship with the business entity.
  • Customers. The covenant is limited to material contact customers. It does not continue for more than four years following the end of the owner's business relationship with the business entity.
  • Notice of a sale. A written provision in which an owner agrees to give prior notice of the owner's intent to terminate, sell or otherwise dispose of the owner's ownership interest in the business entity is enforceable and not a restraint of trade.

Each of these covenants is conclusively presumed to be enforceable once it meets its conditions.[1]

Material Contact Customers

A material contact customer is any customer or prospective customer that is one of these:

  • solicited, produced or serviced, directly or indirectly, by the employee or owner at issue
  • a customer about whom the employee or owner, directly or indirectly, had confidential business or proprietary information or trade secrets in the course of the relationship with the customer[1]

Overbroad Covenants to Avoid and Defenses in Kansas

A covenant that the statute does not presume enforceable can still be overbroad or not reasonably necessary to protect a business interest. In that case, the court must modify the covenant, enforce it as modified and grant only the relief reasonably necessary to protect that interest.[1]

A presumption is not the end of the case. An employee or owner may still assert any applicable defense available at law or in equity for the court's consideration in a dispute over a written covenant.[1]

Frequently Asked Questions

Are non-competes enforceable in Kansas?

Yes, when the restraint is reasonable. Under Kan. Stat. Ann. § 50-163, an agreement is not unlawful, void, prohibited or wrongful under the Kansas restraint of trade act if it is a reasonable restraint of trade or commerce.[1]

Do non-competes still hold up in court?

In Kansas they can, if the restraint is reasonable. A court must modify an overbroad covenant that the statute does not presume enforceable, then enforce it as modified.[1]

How enforceable is a non-compete in Kansas?

It depends on whether the restraint is reasonable. A written non-solicitation covenant that meets the statute's conditions is conclusively presumed enforceable.[1]

How enforceable is a non-compete agreement?

State law decides, and the standard differs from state to state. Kansas asks whether the agreement is a reasonable restraint of trade or commerce.[1]

What makes non-compete agreements enforceable?

In Kansas the test is whether the agreement is a reasonable restraint of trade or commerce. A written covenant that meets the statute's conditions is also conclusively presumed enforceable.[1]

General information, not legal or tax advice.

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Sources

  1. Kan. Stat. Ann. § 50-163.
Published: Aug 14, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.