• Thu. Jun 8th, 2023

Performing Company in Minnesota? Six Items Employers Must Know About the New Noncompete Ban


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 soon after July 1, 2023. Minnesota now joins the developing list of states putting considerable limitations on the use of restrictive covenants in employment. Right here are six crucial items every single small business with Minnesota workers desires to know about the new law:

  • All post-employment noncompetes are prohibited beginning July 1, 2023.
  • The law applies to each workers and independent contractors.
  • Noncompetes in impact in the course of 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 decision-of-law and decision-of-venue provisions for noncompete agreements.
  • Employers with Minnesota workers or independent contractors need to contemplate operating with employment counsel to guarantee their agreements and processes are compliant with the new law, and that the small business is nicely-positioned to guard its crucial relationships and confidential information and facts in light of this considerable alter to Minnesota law. 

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

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