Starting July 1, 2023, non-compete agreements are prohibited in Minnesota. This is a major victory for employee rights.
The law prohibits all non-compete agreements with an employee or independent contractor working for the employer, regardless of the employee’s income or job title.
There are only two limited exceptions. Non-competes will be valid and enforceable if they strict similar business for a reasonable period of time and in a reasonable geographic area if they are agreed to: (1) during the sale of a business; or (2) in anticipation of the dissolution of a business.
Courts may award attorneys’ fees to individuals required to enforce their rights under this law.
Non-competes entered into before July 1, 2023 remain enforceable in Minnesota.