By Melissa Muro LaMere

On Could 24, 2023, Minnesota Governor Tim Walz signed SF 3035, banning all noncompete agreements entered into on or after July 1, 2023. Minnesota now joins the rising record of states putting important limitations on the usage of restrictive covenants in employment. Listed here are six key issues each enterprise with Minnesota employees must know in regards to the new legislation:

  • All post-employment noncompetes are prohibited beginning July 1, 2023.
  • The legislation applies to each workers and impartial contractors.
  • Noncompetes in impact throughout employment should not impacted.
  • The brand new legislation just isn’t retroactive – noncompetes entered into earlier than July 1, 2023 should not impacted.
  • Buyer non-solicitation and worker non-solicitation agreements should not impacted (but when the availability features like a noncompete, it is going to be banned even whether it is known as a non-solicit).
  • Bans non-Minnesota choice-of-law and choice-of-venue provisions for noncompete agreements.
  • Employers with Minnesota workers or impartial contractors ought to contemplate working with employment counsel to make sure their agreements and processes are compliant with the brand new legislation, and that the enterprise is well-positioned to guard its key relationships and confidential data in mild of this important change to Minnesota legislation. 

    Melissa is admitted to apply legislation in Minnesota and isn’t admitted in California or another state.

    By Editor

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