Minnesota employers (and employers with Minnesota employees):
Restrictive covenant limitations may be coming your way too. Minnesota has proposed legislation that would prohibit non-competition agreements between employers and employees outside the sale of a business context. Notably, confidentiality and non-solicitation provisions would still be enforceable.
The proposed legislation would also prohibit employers from circumventing Minnesota’s noncompete prohibition by designating a different governing law or venue for the agreement, and would permit employees to recover attorneys’ fees in actions to fight enforcement of noncompete agreements that violate the proposed law.
Be on the lookout for further developments regarding this proposed legislation, which may ultimately require updates to offer letters, employment agreements, and/or protective covenant agreements.
See the proposed legislation here (page 169): SF 3035 4th Engrossment – 93rd Legislature (2023 – 2024)