State LawsMinnesota
Non-Compete Agreements in Minnesota: 2023 Ban for Most Workers
December 21, 20245 min read
Minnesota joined the growing list of states restricting non-competes, with a near-total ban effective July 1, 2023.
The 2023 Ban
Minnesota law now prohibits employers from requiring employees to agree to non-compete covenants, with very limited exceptions.
Limited Exceptions
- Sale of business: Non-competes may be included in connection with sale or dissolution of a business
- Anticipatory non-competes: Before the law took effect
What's Still Allowed
- Non-disclosure/confidentiality agreements
- Non-solicitation of customers (with limitations)
- Agreements not to use or disclose trade secrets
Remedies for Violation
Employees may recover attorney's fees and costs if employers attempt to enforce prohibited non-competes.
Frequently Asked Questions
Are non-competes legal in Minnesota?
No, Minnesota banned most non-competes effective July 1, 2023. The only exception is non-competes in connection with the sale or dissolution of a business. Non-solicitation and confidentiality agreements are still permitted.
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