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Undertaking Company in Minnesota? Six Issues Employers Ought to Know About the New Noncompete Ban

ByEditor

May 26, 2023

By Melissa Muro LaMere

On Could 24, 2023, Minnesota Governor Tim Walz signed SF 3035, banning all noncompete agreements entered into on or right after July 1, 2023. Minnesota now joins the increasing list of states putting important limitations on the use of restrictive covenants in employment. Right here are six essential factors each and every business enterprise with Minnesota workers wants to know about the new law:

  • All post-employment noncompetes are prohibited beginning July 1, 2023.
  • The law applies to each personnel and independent contractors.
  • Noncompetes in impact through employment are not impacted.
  • The new law is not retroactive – noncompetes entered into ahead of July 1, 2023 are not impacted.
  • Client non-solicitation and employee non-solicitation agreements are not impacted (but if the provision functions like a noncompete, it will be banned even if it is referred to as a non-solicit).
  • Bans non-Minnesota option-of-law and option-of-venue provisions for noncompete agreements.

    • Employers with Minnesota personnel or independent contractors should really take into account functioning with employment counsel to assure their agreements and processes are compliant with the new law, and that the business enterprise is nicely-positioned to shield its essential relationships and confidential data in light of this important alter to Minnesota law. 

    Melissa is admitted to practice law in Minnesota and is not admitted in California or any other state.

    Editor

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