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Can I require employees to sign non-compete agreements in Minnesota? What are the requirements?

Yes, you can require employees to sign non-compete agreements in Minnesota, but such agreements are generally disfavored and are only enforceable if they meet certain requirements.

Requirements for Non-Compete Agreements in Minnesota

  1. Consideration: The employer must provide the employee with some form of consideration, such as a job offer or a promotion, in exchange for signing the non-compete agreement.
  2. Reasonable duration and geographic scope: The non-compete agreement must be reasonable in duration and geographic scope. The agreement must be no longer than necessary to protect the employer’s legitimate business interests, and the geographic scope must be limited to the area where the employer does business.
  3. Legitimate business interest: The non-compete agreement must be necessary to protect the employer’s legitimate business interests, such as trade secrets, confidential information, or customer relationships.
  4. No undue hardship on the employee: The non-compete agreement must not impose an undue hardship on the employee. This means that the agreement must not prevent the employee from earning a living or pursuing their chosen profession.

It is important to note that there are additional legal considerations that may impact the enforceability of non-compete agreements in Minnesota. For example, collective bargaining agreements may provide additional protections for employees [2.1][1.3]. Additionally, there are limitations on the contracting-out of services provided by members of a state of Minnesota or University of Minnesota bargaining unit [1.2].

In summary, non-compete agreements are generally disfavored in Minnesota and are only enforceable if they meet certain requirements, including consideration, reasonable duration and geographic scope, protection of legitimate business interests, and no undue hardship on the employee. Additional legal considerations may impact the enforceability of non-compete agreements in Minnesota [2.1][1.2][1.3].

Source(s):
Jurisdiction

Minnesota