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Performing Small business in Minnesota? Six Items Employers Should really Know About the New Noncompete Ban

ByEditor

May 26, 2023

By Melissa Muro LaMere

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

  • All post-employment noncompetes are prohibited beginning July 1, 2023.
  • The law applies to each staff and independent contractors.
  • Noncompetes in impact for the duration of employment are not impacted.
  • The new law is not retroactive – noncompetes entered into just before July 1, 2023 are not impacted.
  • Buyer 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 selection-of-law and selection-of-venue provisions for noncompete agreements.

    • Employers with Minnesota staff or independent contractors should really take into account functioning with employment counsel to make sure their agreements and processes are compliant with the new law, and that the enterprise is nicely-positioned to defend its essential relationships and confidential facts in light of this substantial adjust 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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