Non-Compete, Non-Solicitation, & Non-Disclosure

Minneapolis Non-Compete Lawyers

Employment Law Representation in Hennepin County & Twin Cities Metro

A non-compete agreement is a contractual clause that prevents an employee from working for a competitor or starting a competing business within a particular geographic area for a specified period after leaving a job.

These agreements protect companies from unfair competition and trade secrets or proprietary information loss. Although non-compete agreements can vary widely in their terms and conditions, they have generally aimed to limit the employee's ability to engage in professional activities that could be seen as a conflict of interest with their former employer.

In a significant development for employees' rights, Minnesota recently enacted a law that bans the enforcement of most non-compete agreements. This groundbreaking legislation aligns with a broader national trend to foster greater job mobility and economic opportunity for workers. The new law effectively nullifies non-compete clauses in employment contracts, making it easier for employees to seek new job opportunities without fearing legal repercussions.

If you have an issue related to a non-compete agreement or clause, we urge you to consult one of our employment lawyers at RWI Law. We can help you understand the impact of Minnesota’s new law and assist in any disputes or negotiations related to non-competes. Our team is highly knowledgeable and skilled in resolving such cases efficiently and effectively.

Schedule a consultation with a Minneapolis non-compete attorney at RWI Law by phone at (320) 408-2614 or by email on our online contact form.

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Minnesota’s New Law Regarding Non-Compete

Minnesota's new law regarding non-compete agreements, which took effect on July 1, 2023, prohibits most post-employment non-compete agreements between employers and employees or independent contractors. The law applies broadly to agreements that restrict an individual from engaging in a competing business activity after leaving employment.

Key points about Minnesota's new law on non-compete agreements include:

Void and unenforceable: Minnesota law declares that any covenant not to compete in a contract or agreement is void and unenforceable.
Scope of application: The law covers post-termination covenants not to compete ("non-competes") between employers and employees, including independent contractors.
Prohibition: The new law effectively bans most non-compete agreements in Minnesota, aiming to provide more freedom for employees to seek new opportunities and prevent employers from using overly restrictive practices.
Legislative action: The legislation was enacted to protect the rights of employees and promote a more competitive job market by limiting the use of non-compete agreements that could hinder individuals' career advancement.

Exceptions to the New Law

Some exceptions exist where non-compete agreements may still be enforceable under specific circumstances.

The law allows for certain exceptions to the general prohibition based on the following criteria:

Sale of business: Non-compete agreements may be enforceable in cases where an individual sells the goodwill or ownership interest in a company, and the buyer requires the seller to agree not to compete with the business being sold.

While the new law focuses on non-compete agreements, other agreements are generally enforceable. These include non-solicitation and non-disclosure (confidentiality) agreements.

Non-solicitation agreements restrict departing employees from soliciting clients, customers, vendors, or other employees of their former employer for a specified period after their employment ends. They protect the employer’s customer base and other relationships.

Non-disclosure agreements (NDAs) play a crucial role in employment law by safeguarding confidential information, trade secrets, and proprietary knowledge within the employer-employee relationship.

NDAs are legally binding contracts establishing a framework for protecting sensitive information shared between parties and outlining employees' obligations to maintain confidentiality during and after employment.

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What Can Employers Do to Protect Themselves Under the New Non-Compete Law?

While the law restricts post-employment non-compete agreements, employers can implement alternative strategies to safeguard their proprietary information, customer relationships, and competitive advantage.

These strategies can include trade secret protection, NDAs, non-solicitation agreements, and implementing confidentiality policies. Confidentiality policies and training programs can educate employees about the importance of protecting confidential information. Drafting clear and comprehensive employment contracts can also be beneficial, outlining confidentiality obligations and restrictions on using company information post-employment.

If you need legal assistance in protecting your company on these issues, we urge you to discuss your situation with one of our capable employment law attorneys.

RWI Law: Protecting Your Rights in Minnesota Employment Law Issues

Our legal team is steadfast in our commitment to protecting the rights of all clients in Minnesota employment law issues. Whether you are an employer, employee, or job applicant who needs legal assistance regarding a non-compete agreement or any other employment-related challenge, we can provide comprehensive support and strategic counsel.

Contact us via our online contact form or call (320) 408-2614 to discuss your concerns with a Minneapolis non-compete attorney.

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