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Minnesota Employment Contract

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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.

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Davis S. on ContractsCounsel
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August 16, 2020

Davis S.

Founder
Free Consultation
Minneapolis, MN
21 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.

Namrita N. on ContractsCounsel
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4.9 (12)
Member Since:
August 18, 2021

Namrita N.

Attorney at Law
Free Consultation
Plano, TX
4 Yrs Experience
Licensed in MN, TX
Mitchell Hamline School of Law

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.

Michael B. on ContractsCounsel
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4.8 (14)
Member Since:
October 30, 2020

Michael B.

Attorney
Free Consultation
Illinois
14 Yrs Experience
Licensed in IL, MN, WI
University of the Pacific

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.

Yoko T. on ContractsCounsel
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July 22, 2020
Maury B. on ContractsCounsel
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Member Since:
September 2, 2020

Maury B.

Senior Counsel
Free Consultation
Minneapolis, MN
33 Yrs Experience
Licensed in MN, WI
Mitchell Hamline School of Law

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.

Lyndsey G. on ContractsCounsel
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Member Since:
October 30, 2020

Lyndsey G.

Attorney
Free Consultation
Roseville, MN
10 Yrs Experience
Licensed in MN
Mitchell Hamline College of Law

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

Employment Contract

California

Asked on Apr 22, 2023

What's intellectual property in an employment contract?

I recently accepted a job offer that contained an employment contract. The contract states that I will not use any intellectual property of the company without prior written consent. I am unsure what exactly constitutes as intellectual property and would like to get a better understanding of the definition of intellectual property in the context of an employment contract.

Russell M.

Answered Apr 28, 2023

Your Agreement may contain a definition like this: “Intellectual Property” means recognized protectable rights and interests such as: patents (whether or not issued), copyrights, trademarks, service marks, applications for any of the foregoing, inventions, Confidential Information, trade secrets, trade dress, domain names, logos, insignia, color combinations, slogans, moral rights, right of publicity, author’s rights, contract and licensing rights, works, mask works, industrial design rights, rights of priority, know how, design flows, methodologies, devices business processes, developments, innovations. But a few of these are going to be most likely available to you. Internal company know-how or “ how we do things here that help us succeed”. Note the words “Confidential Information”. Confidential Information is another defined term which includes customer and employee information, pricing and business strategy and plans, among others.

Read 1 attorney answer>

Employment

Employment Contract

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).

Read 1 attorney answer>

Employment

Employment Contract

North Carolina

Asked on Apr 18, 2023

What's position hierarchy in an employment contract?

I am a potential employee considering a job offer from a company. I have received a copy of the employment contract, but I am confused about the position hierarchy outlined in it. Specifically, I am unsure of the differences between the various job titles and the roles and responsibilities associated with each one. I would like to know more about the position hierarchy in the contract to better understand the job I am considering.

N'kia N.

Answered Jun 2, 2023

Position hierarchy may vary, as it is typically based on such factors as industry standards, company size, and internal policies. Before accepting an employment offer, a prospective employee should have a clear understanding of where the proposed position stands in the prospective employer's position hierarchy, as well as how the hierarchy affects the duties and responsibilities for that position. If the position hierarchy in a proposed employment contract or an employment offer letter is confusing, the prospective employee should seek clarification from the proposed employer.

Read 1 attorney answer>

Litigation

Employment Contract

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).

Read 1 attorney answer>

Employment

Employment Contract

North Carolina

Asked on Apr 18, 2023

What's termination notice in an employment contract?

I recently accepted a job offer with a new company and I was given an employment contract to sign. I was looking through the contract and noticed that it mentions something about a termination notice. I'm not sure what this means or how it applies to my employment, so I wanted to ask a lawyer to get a better understanding of this clause.

Ryan D.

Answered May 30, 2023

A termination notice is a provision in an employment contract that specifies the amount of notice an employer must give an employee if they wish to terminate the contract, or vice versa if the employee wishes to leave. This is an important clause, as it offers some level of job security for the employee and some level of predictability for the employer. In most states, including North Carolina, employment is considered "at-will" unless there is a contract in place that states otherwise. This means that either the employer or the employee may terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the reason isn't illegal (like discrimination). If your contract includes a termination notice clause, this "at-will" status is likely modified to some extent. The specific details would depend on the exact wording in your contract. It could require either party to provide a notice (often 2 weeks, 1 month, or sometimes longer) before terminating the contract. That notice period is intended to give the other party time to adjust plans accordingly. For the employee, it might mean finding a new job; for the employer, it might mean finding a replacement.

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