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Doing Enterprise in Minnesota? Six Issues Employers Ought to Know In regards to 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 after July 1, 2023. Minnesota now joins the rising checklist of states inserting vital limitations on using restrictive covenants in employment. Listed here are six key issues each enterprise with Minnesota staff must know concerning the new regulation:

  • All post-employment noncompetes are prohibited beginning July 1, 2023.
  • The regulation applies to each staff and unbiased contractors.
  • Noncompetes in impact throughout employment are usually not impacted.
  • The brand new regulation will not be retroactive – noncompetes entered into earlier than July 1, 2023 are usually not impacted.
  • Buyer non-solicitation and worker non-solicitation agreements are usually not impacted (but when the supply features like a noncompete, it will likely be banned even whether it is referred to as a non-solicit).
  • Bans non-Minnesota choice-of-law and choice-of-venue provisions for noncompete agreements.

    • Employers with Minnesota staff or unbiased contractors ought to take into account working with employment counsel to make sure their agreements and processes are compliant with the brand new regulation, and that the enterprise is well-positioned to guard its key relationships and confidential info in gentle of this vital change to Minnesota regulation. 

    Melissa is admitted to apply regulation in Minnesota and isn’t admitted in California or every other state.

    Editor

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