Minnesota Non-Compete Agreement
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Minnesota Legal Requirements
Key MN statutes and obligations that apply to your non-compete agreement.
Requirements
- Minnesota banned employee non-competes effective January 1, 2023 (Minn. Stat. § 181.988)
- Non-solicitation agreements (customers and employees) remain enforceable if reasonable
- Non-competes with independent contractors are NOT banned — contractor agreements can include them
- Confidentiality agreements and trade secret protections are unaffected by the ban
- Existing non-competes signed before January 1, 2023 remain valid but may face challenges
- For contractor agreements, include non-compete with reasonable scope and duration
Restrictions & Limits
- Any non-compete signed by an employee on or after January 1, 2023 is void — no reformation allowed
- Employers cannot circumvent the ban by calling an employee an 'independent contractor' — proper classification is essential
- Garden leave provisions do not save employee non-competes in Minnesota
Official Statute References
Primary Minnesota statutes governing this document type.
Minnesota Non-Compete Agreement FAQ
Common questions about non-compete agreements under Minnesota law.
Can Minnesota employers use non-compete agreements?
No, for employees. Minnesota Stat. § 181.988 (effective January 1, 2023) bans non-compete agreements with employees entirely. There are no exceptions — the ban applies regardless of the employee's salary, role, or access to trade secrets. Non-competes with independent contractors (not employees) are not affected.
What alternatives to non-competes work in Minnesota?
Minnesota employers can use: (1) non-solicitation agreements restricting solicitation of specific customers and employees, (2) confidentiality/NDA agreements protecting trade secrets, (3) invention assignment agreements, and (4) IP ownership clauses. These alternatives remain enforceable if reasonable in scope and duration.
Does Minnesota's non-compete ban apply to existing agreements?
The ban applies to agreements signed on or after January 1, 2023. Pre-2023 non-competes may still be enforceable under prior case law. However, courts may scrutinize pre-2023 agreements more closely given the legislative trend against non-competes.
Can a Minnesota employer include a non-compete in an independent contractor agreement?
Yes. The Minnesota ban only applies to employee non-competes. A properly classified independent contractor can agree to a non-compete if it meets the traditional reasonableness standards: protects a legitimate business interest and is reasonable in scope, geography, and duration. Misclassifying employees as contractors does not evade the ban.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.