Mon. Jun 5th, 2023

By Melissa Muro LaMere

On Might 24, 2023, Minnesota Governor Tim Walz signed SF 3035, banning all noncompete agreements entered into on or right after July 1, 2023. Minnesota now joins the expanding list of states putting important limitations on the use of restrictive covenants in employment. Right here are six crucial items every single enterprise with Minnesota workers demands 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 throughout employment are not impacted.
  • The new law is not retroactive – noncompetes entered into prior to 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 ought to look at functioning with employment counsel to make sure their agreements and processes are compliant with the new law, and that the enterprise is properly-positioned to shield its crucial relationships and confidential details in light of this important modify to Minnesota law. 

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

    By Editor

    Leave a Reply