Quick Facts — Employment Contract Lawyers

What is a Minnesota Employment Contract?

A Minnesota employment contract is a legally binding agreement executed by an employer and a new employee that outlines the terms and conditions of employment. Employment agreements are most commonly used when hiring permanent employees, but they are also useful when hiring short-term employees, contractors, subcontractors, and freelance workers.

Minnesota is an “at will” employment state. Under the laws of “at will” employment, an employer can legally fire an employee without cause or notice. A valid employment contract will override the “at will” employment laws and provide protections for both the employee and employer.

Are Employment Contracts Enforceable in Minnesota?

Yes. Employment contracts are enforceable in Minnesota. The laws regulating employment contracts can be found in Chapter 338 of the Minnesota Statutes. These statutes recognize that employment contracts are not only enforceable, but also important to employer-employee relationship.

Common issues addressed in an enforceable employment contract include:

  • Job title and duties
  • Salary
  • Benefits
  • Company policy
  • Reasons for termination
  • Non-disclosure agreements
  • Non-compete agreements

Non-disclosure agreements (NDA) and non-compete agreements are restrictive covenants that protect the employer’s business interests.

What Are the Legal Requirements for Minnesota Employment Contracts?

In Minnesota, employment contracts can be written or oral, however it is always beneficial to have a written contract that is signed both parties.

Recently, Minnesota Courts have recognized that certain statements in an employee handbook can also create an employment contract if the statements meet the following standards:

  1. Terms are clear and definite
  2. The terms are communicated to the employee
  3. The employee accepts the terms and provides the employer with value by working

Types of Minnesota Employment Contracts

There are several types of enforceable employment contracts in Minnesota including:

  • Permanent employee contract. A basic employment contract for a permanent employee that addresses duties, compensation, and reasons for termination.
  • Non-disclosure agreement. A restrictive covenant that prevents employees from disclosing confidential company information after employment.
  • Non-compete agreement. Prevents employees from competing with the employer in the same industry by starting a new business or working for a competitor.

Frequently Asked Questions

How do I hire a lawyer to draft an employment contract in Minnesota?
How much does it cost to hire a lawyer to review an employment contract in Minnesota?

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Davis S. on ContractsCounsel
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Davis S.

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Minneapolis, MN
23 Yrs Experience
Licensed in MN
Mitchell Hamline School of Law

Davis founded DLO in 2010 after nearly a decade of practicing in the corporate department of a larger law firm. Armed with this experience and knowledge of legal solutions used by large entities, Davis set out to bring the same level of service to smaller organizations and individuals. The mission was three-fold: provide top-notch legal work, charge fair prices for it, and never stop evolving to meet the changing needs of clients. Ten years and more than 1000 clients later, Davis is proud of the assistance DLO provides for companies large and small, and the expanding service they now offer for individuals and families.

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Michael B.

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Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.

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Retired Dentist transitioned to Law, with a special interest in Commercial Real Estate, Startup businesses, Asset Purchase Agreements, and Employment Contracts. I love to help dentists and physicians with legal issues pertaining to licensing, credentialing, employment, and general business-legal questions.

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A bilingual attorney graduated from J.D. with a C.P.A. license, an M.B.A. degree, and nearly ten years of experience in the cross-border tax field.

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Respected, driven, ethical, and high energy legal and business professional with strong focus on litigation, contracts and compliance issues. Critical management experience includes client development, developing core initiatives, and forecasting risk in major corporations. Strong legal research, analytical and problem solving skills with demonstrated adaptability in a multifaceted legal practice including delivering high value results in a Fortune 10 environment. Core competencies include: Tactical and strategic legal direction and support to clients which includes contract negotiation, drafting and review, business planning, and a passion for relationship management. Excellent legal research, writing, analytical and problem solving skills including legal training and compliance with regulatory requirements and corporate policies. Coordinates with in-house legal and business resources for team building with excellent verbal communication skills, coaching, and leadership.

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Attorney of 6 years with experience evaluating and drafting contracts, formation document, and policies and procedures in multiple industries. Expanded to estate planning last year.

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Employment

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Florida

Asked on Feb 23, 2023

Do I have to provide my employees with a paycheck stub?

We find employee pay stubs laying around in the warehouse and left in company vehicles

Diane D.

Answered Mar 21, 2023

Florida doesn't require employers to provide a pay stub with a paycheck, nor do they have to offer them in electronic format. Pay stub legislation in Florida instead defaults to federal laws under the Fair Labor Standards Act (FLSA).

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Employment

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Georgia

Asked on Apr 12, 2025

Can a company withhold a performance bonus if I leave before the payout date?

I recently resigned from my job, and in my employment contract, there was a provision for a performance bonus to be paid out at the end of the year. However, the payout date is a few months away, and I am concerned that the company may try to withhold the bonus since I am no longer employed with them. I want to know if they have the legal right to do so, or if I am still entitled to receive the bonus based on my performance during my time of employment.

Jerome L.

Answered Apr 15, 2025

This is a great—and very common—question. Whether the company can legally withhold your performance bonus after resignation depends heavily on how your employment agreement is written and how the bonus is classified. Key Factors to Consider: 1. Is the Bonus Discretionary or Earned? If your contract defines the bonus as discretionary, the employer generally has the right to decide whether to pay it and can condition it on continued employment. If the bonus is based on meeting specific performance goals or metrics, and those have been satisfied, it may be considered earned—even if the payment date is in the future. 2. Does the Contract Require You to Be Employed on the Payout Date? Many agreements include language stating the employee must be actively employed on the bonus payout date. If such a clause exists, the company may be within its rights to withhold the bonus, even if the performance was completed. 3. What Is the Bonus Period? If your bonus was based on a performance period that has already ended (such as a calendar or fiscal year), and you met your goals, you may have a stronger case for claiming the bonus as earned compensation. Georgia-Specific Note: In Georgia, employment is at-will, and courts generally uphold the terms of a written employment agreement. However, Georgia courts have also recognized that earned wages (which can include bonuses if not discretionary) must be paid. If the bonus is performance-based and the company has paid similar bonuses under the same conditions in the past, you may have grounds to assert that the payment is owed. What You Can Do: Review your employment agreement and any bonus policy documents closely. Look for phrases like “discretionary,” “earned,” and “must be employed on the payout date.” If the language is unclear, you may want to consult an attorney to evaluate whether the company is legally permitted to withhold the bonus—or if you may have a claim based on how the bonus was structured and earned. If you would like help reviewing your agreement, I’d be happy to assist.

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Litigation

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Texas

Asked on Apr 23, 2023

What's the termination clause in an employment contract?

I recently accepted a position at a company and they have given me an employment contract to review. I have been reading through the contract and noticed a section regarding termination. However, I am not sure what the termination clause in the contract states and I am hoping to get some clarification from a lawyer. I want to make sure that I understand my rights and obligations before signing the contract.

Curt L.

Answered Apr 28, 2023

Most employment contracts contain (1) termination for cause, and/or (2) termination without cause (also known as at-will employment relationship).

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Contracts

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Ohio

Asked on Apr 13, 2023

What's personal leave in an employment contract?

I have recently been offered a job, and the employment contract I have been provided with states that I am entitled to personal leave. I am not sure what this is, or what it entitles me to. I would like to know what rights and responsibilities I have regarding personal leave, and what the employer's expectations are of me with regards to this leave.

Jeffrey K.

Answered Apr 14, 2023

Personal leave sometimes replaces vacation and sick time. Some employers just give employees time off for whatever reason the employee chooses. To know more about the rights and responsibilities, you should speak to HR at your new employer who will help you with the employer's expectations and your rights under the leave provision in your contract. Also, look at your contract as it may provide insight as to how to implement the leave. When in doubt, speak to HR. Thanks.

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Employment

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Florida

Asked on Apr 19, 2023

What's probationary period in an employment contract?

I am a recent college graduate who recently accepted a job offer from a company. As part of the offer, I was asked to sign an employment contract. I understand that the contract includes a probationary period, but I'm not sure what that entails. I would like to know what the probationary period is and what it means for me as an employee.

Diane D.

Answered May 10, 2023

A period of time to evaluate you and to show that you're a good fit for the job and that you are fully qualified for it. At the end of the probationary period, they will either keep you on or terminate you.

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