Author: Melissa Muro Lamer

Minnesota Governor Tim Waltz signed SF 3035 on Could 24, 2023, banning all non-compete agreements entered into on or immediately after July 1, 2023. Minnesota now joins a developing list of states that spot important restrictions on the use of restrictive covenants in employment. Right here are six essential issues each Minnesota employee enterprise wants to know about the new law:

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  • As of July 1, 2023, all non-competes immediately after termination of employment are prohibited.
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  • The law applies to each personnel and independent contractors.
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  • This does not impact non-competes in impact in the course of employment.
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  • The new law is not retroactive – it has no impact on non-competes concluded just before July 1, 2023.
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  • It does not impact client non-disclosure agreements and non-solicitation agreements (but if the provision operates as a non-compete, it will be prohibited even if it is referred to as non-solicitation).
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  • Prohibits option of law and option of venue provisions for non-Minnesota non-competitors agreements.
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    Employers with Minnesota personnel or independent contractors must take into consideration operating with employment counsel to guarantee that their agreements and processes comply with the new law and that the enterprise is properly positioned to guard its essential relationships and confidential data in light of this important modify in Minnesota law.

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

    By Editor