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HB 2650

Requiring that noncompete agreements be reasonable and providing that such agreements are null and void upon the sale or change in ownership or control of an employer.

2025-2026 Regular Session Introduced by Steve Howe

Kansas bill nullifies noncompete agreements upon employer sale/ownership change and requires remaining noncompetes to be reasonable, aimed at increasing worker mobility.

Died in Committee
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WeVote Research Nonpartisan
Bill Summary · HB 2650

Legislative bill overview

HB 2650 would invalidate noncompete agreements in Kansas if a company is sold or experiences a change in ownership or control. The bill also requires that any remaining noncompete agreements be "reasonable" in their terms, though the bill text does not define what constitutes reasonableness.

Why is this important

Noncompete agreements significantly restrict workers' ability to change jobs within their industry. This bill addresses a practical problem: employees often find their noncompetes unenforceable or irrelevant after corporate acquisitions, yet companies may still attempt to enforce them. The change-of-control provision could meaningfully increase job mobility and worker bargaining power during business transitions.

Potential points of contention

  • "Reasonableness" standard undefined: The bill requires agreements be reasonable but provides no definition, potentially creating litigation over what qualifies, leaving courts to interpret intent
  • Business perspective: Companies argue noncompetes protect trade secrets and client relationships; this bill could reduce their ability to enforce these protections during vulnerable ownership transitions
  • Scope ambiguity: Unclear whether "change in control" applies only to majority ownership changes or includes minority stake acquisitions, and how it interacts with existing case law
  • Severability concerns: No language addressing whether voiding the noncompete affects other contract terms or whether employees must return consideration received

Compiled from official sources — confirm details with the bill’s official record.

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