A Minnesota Non-Compete Agreement is an employment contract used to protect the employer’s interest and secure employees’ right to pursue work in an open labor market.
In Minnesota, a non-compete agreement must be no broader than necessary to protect the employer’s legitimate business interest. A non-compete agreement must not impose any unnecessary hardship on the employee.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – Yes.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – Yes.
- Statute of Limitations for breach of contract: 6 years.
Legally Enforceable in Minnesota?
Non-compete agreements are legally enforceable in Minnesota, but only if they meet specific requirements. The non-compete must be fair to both parties and should only be used if necessary.
Time Limitations
Minnesota courts routinely scrutinize agreements to ensure they are reasonable as to time. Time limits of one or two years are frequently upheld. Limitations on using customer lists or non-solicitation of customers are sometimes found valid without time limits, but these restrictions must be carefully written.
Geographical Limitations
In the case of highly specialized sales personnel, Minnesota courts have upheld non-compete agreements with no geographical limitations. The circumstances of the case were unique, however, and a geographical restriction of the non-compete agreement is probably prudent to consider when drafting any agreement. [1]
Other Limitations
If an employee does not take employment with a direct competitor, many Minnesota courts will view any attempt to enforce a non-compete agreement unfavorably.
Sample
Download a Minnesota non-compete agreement template in PDF or Word format:
