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Home Business Non-Compete Agreement Minnesota

Minnesota Non-Compete Agreement Template

Updated May 21, 2023 | Legally reviewed by Brooke Davis

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.

Table of Contents
  • Is a Non-Compete Agreement Legally Enforceable in Minnesota?
  • Reasonable Uses and Objections
  • Minnesota Non-Compete Limitations
  • Minnesota Non-Compete Agreement Sample

Is a Non-Compete Agreement 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.

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

Minnesota Non-Compete Limitations

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. See, Medronic, Inc. v. Hughes (Minn. App. 2011). [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.

Minnesota Non-Compete Agreement Sample

This example of a Minnesota non-compete agreement will let you draft up-to-date agreements for your business, simple and inexpensive:

non compete agreement template

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Legal Templates uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial guidelines to learn more about how we keep our content accurate, reliable and trustworthy.

  1. Medronic, Inc. v. Hughes (Minn. App. 2011). https://casetext.com/case/medtronic-inc-v-hughes-1
non compete agreement template Preview PDF

Start building your Minnesota Non-Compete Agreement here.

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