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Employee Restrictive Covenant Agreement

Cover Terms

The terms below are incorporated into and form part of this agreement.

Employer[Legal name of the employer]
Employee[Full legal name of the employee]
Employee Title / Position
Effective Date[Effective date of this agreement]
Governing LawKansas
Confidentiality
Trade Secrets DurationPerpetual
Other Confidential Information Duration24 months
Employee Non-Solicitation
Duration24 months
Market benchmark (based on 76 companies)HideShow
TermFrequency
12 months44.7%
Selected default24 months34.9%
18 months11.2%
Why this selected default?

Why is this the selected default?

The Kansas statutory safe harbors run to customer solicitation and owner covenants; they do not create a safe harbor for an employer-employee coworker no-recruit covenant, so this clause stands on the statute's general reasonableness baseline. 24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative, sized to the employer's actual interest in workforce stability.

Customer Non-Solicitation
Duration24 months
State-law basis 24 months

Reference only — not part of this agreement.

An employee customer non-solicitation covenant limited to material contact customers and running no more than two years after employment ends is conclusively presumed enforceable and not a restraint of trade under the Kansas statute. 24 months tracks the outer edge of that statutory safe harbor; counsel should size it down to the actual customer relationships protected, because a term past two years forfeits the presumption and falls back to the general reasonableness baseline.

Non-Competition
Duration12 months
Market benchmark (based on 80 companies)HideShow
TermFrequency
Selected default12 months53.8%
24 months23.8%
18 months11.3%
Why this selected default?

Why is this the selected default?

Kansas sets no statutory ceiling on a non-compete term; the time factor is weighed against the employer's real protectable interest under the four-factor reasonableness test, so there is no safe-harbor number. 12 months matches the modal non-compete term observed in benchmarked, publicly-filed employee agreements — a conservative default counsel should size to the actual role and market rather than copy from another form; Kansas authority has treated a two-year non-compete term as reasonable on its facts but that is fact-specific, not a ceiling.

Restricted Territorythe geographic area in which Employee provided services
State-law basis the geographic area in which Employee provided services

Reference only — not part of this agreement.

Tied to the employee's actual service area. Kansas imposes no statutory cap on territory; a narrower area genuinely needed to protect the employer's interest is far easier to defend under the four-factor reasonableness test than a statewide ban, and Kansas territorial authority cut an excessive area down to only what was necessary and enforced just that.

Competitive Business[Description of the business activities that constitute competition with the employer.]
Specified Competitors
No Business with Covered Customers
Duration24 months
Non-Investment
Duration12 months
Non-Disparagement
Duration24 months

Standard Terms

1. Defined Terms

“Competitive Business” means the business activities described in Cover Terms under Competitive Business.

“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee.

“Covered Customers” means customers and prospective customers that Employee solicited, produced, or serviced, directly or indirectly, or about whom Employee had confidential business or proprietary information or trade secrets, in the course of Employee's relationship with the customer during the 12 months before termination of employment.

“Covered Employees” means employees with whom Employee worked or whom Employee managed during the 12 months before termination of employment.

“Passive Public Holdings” means ownership of securities of a publicly traded company representing less than five percent of any class of such company's securities, and interests in diversified mutual funds, index funds, and exchange-traded funds that may hold securities of a Competitive Business.

“Protected Interests” means Employer's Confidential Information, trade secrets, goodwill in its customer, vendor, and business-partner relationships, and, for a professional practice, referral sources, but not Employer's interest in avoiding ordinary competition.

“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.

“Restricted Territory” means the geographic area described in Cover Terms under Restricted Territory.

“Solicit” means to solicit, recruit, induce, persuade, encourage, direct, or otherwise interfere with, directly or indirectly, a person or entity, but does not include responding to general advertisements or unsolicited inquiries not initiated by Employee.

“Trade Secrets” has the meaning given in the Kansas Uniform Trade Secrets Act, K.S.A. 60-3320(4).

2. Recitals and Protectable Interests

Employer and Employee acknowledge that each restrictive covenant in this agreement protects one or more of Employer's Protected Interests and is reasonable in time, territory, and scope. Employer would not provide Employee with access to its Confidential Information, trade secrets, customer goodwill, and referral sources absent the protections in this agreement.

Drafting Note The four-factor test, the employer's burden, and unlimited appellate review

Each covenant in the agreement clears the four-factor reasonableness test on its own, and the employer carries the burden of showing that a legitimate interest, no undue burden on the employee, no injury to the public welfare, and reasonable time and territory are all satisfied . Adequate consideration establishes only that a covenant is supported, not that it is reasonable, so a covenant that clears the consideration question can still fail this test. Enforceability is reviewed without deference on appeal, so a covenant that survives the trial court can be retested in full, and a recital of irreparable harm smooths the path to interim relief but does not substitute for a covenant that survives the four factors . A disclosure to a departing employee's next employer built on a covenant a court later narrows or declines to enforce exposes the employer to a claim of its own, so the restraint worth papering is one the employer is prepared to defend on all four factors.

3. Timing, Consideration, and Employee Acknowledgements

In consideration of Employee's employment or continued employment, the parties agree to the terms of this agreement. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement. Employee acknowledges that the restrictions in this agreement are reasonable and necessary to protect Employer's Protected Interests. This agreement is effective as of the Effective Date listed in Cover Terms.

4. Confidential Information and Trade Secret Protection

Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's obligations regarding trade secrets continue in perpetuity, for as long as the information remains a trade secret. Employee's obligations regarding other Confidential Information, including customer lists, pricing, and confidential know-how, continue for the period specified in Cover Terms. This obligation does not restrict Employee's use of the general knowledge, skill, and experience Employee acquired during employment.

Drafting Note Confidential information

The trade-secret statute does not reach ordinary confidential information. Wolfe Electric confirms the Act is the exclusive remedy for trade-secret misappropriation and reaches only information meeting the statutory definition, so information that falls short of trade-secret status is protected only by a separate, reasonable confidentiality covenant, and an agreement that lumps everything under a trade-secret label leaves its non-secret information unprotected .

5. Permitted Disclosures and Protected Conduct

Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by applicable law, including Section 7 of the National Labor Relations Act (29 U.S.C. § 157); (d) testifying truthfully in legal proceedings; or (e) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.

6. Return, Deletion, and Certification of Company Property

Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request.

7. Non-Solicitation of Employees

During the Restricted Period, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee. This restriction does not prohibit Employee from providing a professional reference upon request or from hiring a person who responds to a general advertisement not directed specifically at Employer's employees.

8. Non-Solicitation of Customers

During the Restricted Period, Employee must not Solicit the business of any Covered Customer, including any reduction, termination, acceptance, or transfer of any Covered Customer's business, in whole or in part, for the purpose of providing any product or service that is competitive with those provided by Employer.

Drafting Note The material-contact safe harbor and the coworker no-recruit gap

The statutory safe harbors are covenant-specific. A customer non-solicit limited to material contact customers and capped at two years is conclusively presumed enforceable and not a restraint of trade, and — mapped to the employer's customer-goodwill interest — it is often a more readily enforceable protection than a broad non-compete, which stays on the common-law reasonableness test . A covenant drawn wider than the safe harbor, through an entire-book-of-business scope or a term past two years, forfeits the presumption and falls back to the general reasonableness baseline. The safe harbors do not reach an employer-employee covenant not to recruit coworkers: no conclusive presumption covers that restraint, so a coworker no-recruit clause stands on ordinary reasonableness and holds only where it reaches no further than the employer's interest in workforce stability .

9. No Business with Covered Customers

During the Restricted Period, Employee must not accept, service, or do business with any Covered Customer, regardless of whether Employee or the Covered Customer first initiated contact.

10. Non-Competition

During the Restricted Period, Employee must not engage in, be employed by, consult for, or have an active ownership interest in any Competitive Business within the Restricted Territory. If Employer has identified specific competitors in Cover Terms under Specified Competitors, this covenant applies only to those named competitors and their businesses. Passive Public Holdings are permitted.

11. Non-Investment

During the Restricted Period, Employee must not acquire or hold any active ownership interest in, serve as a director, officer, manager, or advisor to, or have material economic participation in any Competitive Business. Passive Public Holdings are permitted.

12. Non-Disparagement

During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, or exercising rights protected by law, including rights protected under Section 7 of the National Labor Relations Act.

13. Physician and Health Care Practitioner Covenants

If Employee is a physician or other health care practitioner, any covenant in this agreement restraining Employee from the practice of the profession is intended to use a reasonable radius and a reasonable term and to preserve patient access and continuity of care.

14. No Conflicting Obligations

Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.

15. Notice to Future Employers and Other Third Parties

Employer may disclose the existence and terms of this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach this agreement. Employee consents to this disclosure.

16. Restricted Period; No Open-Ended Extension

The Restricted Period for each covenant is a defined, fixed term running from the date Employee's employment ends, as specified in Cover Terms. The parties do not intend, and this agreement does not provide for, any extension of the Restricted Period during a breach or during enforcement litigation. Employer's remedy for competition during the Restricted Period is damages and injunctive relief, not added time; the Restricted Period is not extended, tolled, or suspended by any breach or dispute.

Drafting Note Tolling duration

An open-ended tolling-during-breach-and-litigation clause in a Kansas non-compete is a serious enforcement risk rather than a safety net. Doan refused to enforce one as an unreasonable, potentially indefinite restraint, so the time such a clause purports to add back may simply not be enforced, while a defined and reasonable fixed term stands on the ground Doan approved .

17. Remedies

Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate. Employer may seek injunctive or other equitable relief in addition to any other remedies available at law.

18. Enforceability and Severability

If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect.

19. Survival and Expiration of Each Covenant

Each restrictive covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms. Obligations under the Confidential Information and Trade Secret Protection section survive for the Trade Secrets Duration specified in Cover Terms to the extent they relate to trade secrets, and for the Other Confidential Information Duration specified in Cover Terms for other Confidential Information. All other provisions survive to the extent necessary to enforce rights that arose during employment.

20. Assignment and Successors

Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns.

21. Governing Law, Venue, and Dispute Process

This agreement is governed by the law listed in Cover Terms. Disputes will be resolved in the courts of the Governing Law state, subject to non-waivable rights under applicable law.

22. Entire Agreement, Amendment, Waiver, and Electronic Signatures

This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject. This agreement may be amended only in writing signed by both parties. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.

Signatures

By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.

Employer

Employer: [Legal name of the employer]

Signature:

Signatory Name: [Full name of the authorized signatory signing for the employer]

Title: [Title of the authorized signatory signing for the employer]

Date:

Employee

Signature:

Print Name: [Full legal name of the employee]

Date:

Authored by OpenAgreements contributors. Kansas-specific analysis informed by the quote-verified Kansas practice note. Licensed under CC BY 4.0.