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  1. #1
    Join Date
    Feb 2011
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    Default Non Compete Agreement

    My question involves employment and labor law for the state of: Kansas
    I work in Kansas but my company's main office is on the west coast. I've just received an offer for what is technically a demotion but more money. I've been asked to sign a non compete agreement that says I won't seek employment with a competitor for 16 months after I leave the company and will not work for a competitor in the same capacity in any state in which my company has business - which is currently 30 states and growing every year. This seems unusually restrictive, it is legal? Thank you for any help you can provide.

  2. #2
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    Default Re: Non Compete Agreement

    Quote Quoting Varney Business Services, Inc. v. Pottroff, 275 Kan. 20, 59 P. 3d 1003 (2002)
    Kansas courts have repeatedly recognized that covenants not to compete are valid if ancillary to any lawful contract, reasonable, and not adverse to the public welfare. Weber v. Tillman, 259 Kan. 457, 462, 913 P.2d 84 (1996); Eastern Distributing Co., Inc. v. Flynn, 222 Kan. 666, 670, 567 P.2d 1371 (1977); H & R Block, Inc. v. Lovelace, 208 Kan. 538, 543-44, 493 P.2d 205 (1972); Puritan-Bennett, Corp. v. Richter, 8 Kan. App. 2d 311, 313, 657 P.2d 589 (1983). Freedom of contract is the driving force behind finding such covenants enforceable. Weber, 259 Kan. at 462.

    The Weber court set forth four factors to be considered in determining whether a covenant not to compete is reasonable: "(1) Does the covenant protect a legitimate business interest of the employer? (2) Does the covenant create an undue burden on the employee? (3) Is the covenant injurious to the public welfare? (4) Are the time and territorial limitations contained in the covenant reasonable?" 259 Kan. 457, Syl. ¶ 5; see Weber, 259 Kan. at 462 (only legitimate business interest may be protected by noncompetition covenant; covenant will be found unreasonable and unenforceable if sole purpose is to avoid ordinary competition); Evco Distributing, Inc. v. Brandau, 6 Kan. App. 2d 53, 58, 626 P.2d 1192, rev. denied 230 Kan. 817 (1981).
    Beyond that, it's a case-by-case analysis.

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