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.
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:
