Non-Compete Agreements: What You Need to Know Before Signing One
When you’re offered a new job, a stack of paperwork follows. Tucked inside that pile might be a non-compete agreement—something many people sign without thinking twice. These contracts can have a major impact on your future career options, especially if you leave the company or are let go unexpectedly.
Before you sign, it’s worth learning what non-compete agreements are, what Kansas law says about them, and what risks or protections you may have. Our business law attorney in Overland Park, Kansas, can help you understand your rights up front to save you from serious headaches later.
What Is a Non-Compete Agreement?
A non-compete agreement is a contract between an employee and employer that limits the employee’s ability to work for competing businesses after the employment ends. These restrictions typically cover a certain geographic area and time frame. The idea is to prevent former employees from taking valuable knowledge, clients, or trade secrets to a competitor.
In Kansas, courts tend to look closely at non-compete clauses. They’re not automatically enforceable, and employers must show that the restrictions are reasonable and necessary to protect legitimate business interests. Some key features of a non-compete agreement may include:
Time restrictions: Limits that bar you from working for competitors for a set number of months or years.
Geographic scope: Defined areas (like a city, county, or region) where you can't compete.
Scope of work: Restrictions on specific types of roles or services you can't perform for others.
Triggering events: Most clauses take effect once employment ends, but some might apply in other cases, too.
Consequences for breach: Penalties or legal action if you violate the terms.
Now that you know what these agreements are, let’s look at how Kansas treats them—and what factors influence whether they’re valid.
How Kansas Law Views Non-Compete Agreements
Kansas doesn’t have a specific statute that governs non-compete agreements. Instead, courts rely on case law and past decisions to determine if a non-compete is enforceable. This means each case is judged on its own facts, and outcomes can vary based on the details of the contract.
For a non-compete agreement to hold up in Kansas, it must be considered “reasonable.” That’s a subjective standard, but courts often follow a basic checklist to decide. Kansas courts typically consider:
Legitimate business interest: The employer must be protecting something real, like client relationships, confidential information, or unique business methods.
Reasonable duration: A restriction of six months to two years is more likely to be upheld than one that lasts five years.
Geographic reasonableness: Limiting competition in a narrow area like a city may be okay, but banning work statewide often won’t fly.
Public policy concerns: Courts won’t enforce terms that unfairly hurt the employee or go against public interests.
Consideration given: In some cases, a non-compete must be supported by something the employee receives in return, like a job offer, promotion, or raise.
As you can see, Kansas doesn’t give a blanket yes or no to non-compete agreements. The outcome often depends on whether the agreement is fair to both sides.
What You Should Review Before Signing
If you’re handed a non-compete agreement with your job offer, don’t rush through it. Even if you’re excited about the position, you need to think about how this could affect your future. There’s no harm in asking questions or requesting time to review the document with a business law attorney. Here are a few things to review before signing:
Clarity of terms: Is the agreement written in plain language? Do you clearly understand what’s restricted and for how long?
Geographic limits: Does the area make sense for the business? If you move, will it still apply?
Length of restriction: Would a one-year restriction affect your future job plans?
Your role: Are the restrictions appropriate for your position, or are they broader than necessary?
Triggers for enforcement: Will the agreement apply if you’re laid off or fired without cause?
Even if you’re confident you’ll stay with the company long-term, life happens. It’s better to think about the future now than be blindsided later.
Risks of Signing Without Reviewing
Non-compete agreements can look harmless at first glance, but signing one without reading the fine print can lock you into some tough situations. The terms could limit your ability to work in your chosen field or force you to take a lower-paying job if you leave.
The consequences of violating a non-compete can be serious, especially if your former employer decides to take legal action. Even if you didn’t mean to break the terms, a court battle can be costly, time-consuming, and stressful. Common risks include:
Losing job opportunities: You might have to turn down offers from competitors due to the restrictions.
Forced relocation: You could be legally barred from working in your local area.
Legal action: Your former employer could sue for breach of contract, even if you believe the agreement is unfair.
Damaged reputation: A lawsuit or cease-and-desist letter might affect your standing in your industry.
Financial strain: Defending yourself in court or taking a lower-paying job can hurt your income.
Because the consequences can be so significant, it’s always smart to get a second opinion before signing.
Alternatives Employers Might Use
Not every company uses a non-compete clause. Some use less restrictive tools to protect their interests while still giving employees room to grow in their careers. If you're concerned about a non-compete, it may be worth asking if there's room for a different kind of agreement. Some alternatives you might see include:
Non-solicitation agreements: These limit your ability to reach out to former clients or coworkers but don’t block you from working elsewhere.
Confidentiality agreements: These protect trade secrets or proprietary information without restricting where you can work.
Garden leave clauses: These keep you on payroll for a notice period while preventing you from working elsewhere.
Intellectual property clauses: These give the employer rights to inventions or materials created during your employment.
While these agreements can still carry restrictions, they’re often more targeted and less burdensome than a full non-compete.
What to Do If You’ve Already Signed One
Maybe you signed a non-compete years ago and now want to change jobs or start your own business. Don’t panic—just because you signed doesn’t mean the contract will hold up in court. Kansas courts will still look at whether the terms are fair and justified.
You might be able to negotiate a release, argue that the agreement is unenforceable, or work around it by changing your job duties or location. It’s important to act carefully and consult a business law attorney before making your next move. Here are some options to consider:
Requesting a release: Some employers will let you out of a non-compete, especially if you’re not joining a direct competitor.
Negotiating modified terms: You may be able to adjust the time frame or location.
Challenging enforceability: A lawyer can assess whether the contract is legally valid.
Seeking a declaratory judgment: This is a court ruling that clarifies your rights before any lawsuit happens.
Documenting good faith efforts: Keep records of any communication or attempts to comply with the agreement. These could come in handy later with the help of a business law attorney.
Taking proactive steps now can save you a lot of trouble later.
Contact a Business Law Attorney Today
Non-compete agreements can affect your career long after you leave a job. A business law attorney at Hyland Law Firm LLC can help you understand your options, protect your future, and avoid mistakes that could cost you down the line. We serve clients in Overland Park, Kansas, and the Kansas City Metropolitan area and beyond. Call today to get started.