Minnesota Noncompete Agreement: What's Included and Enforceability
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Is a Non-Compete Agreement Enforceable in Minnesota?
Yes. In Minnesota, courts will enforce a non-compete agreement as long as it is reasonable, and the employee knows at the beginning of the employment relationship that there will be a non-compete agreement.
According to the courts, a non-compete agreement is reasonable when it protects the employer’s goodwill without imposing limits on the employee that are greater than necessary.
How Long Does a Minnesota Non-Compete Agreement Last?
Non-compete agreements can be used when employers hire new employees or when a business is purchased, and the new owner wants to prevent the previous owner from continuing to do business. The maximum term for a non-compete used for hiring employees is two years while the maximum term for business sales is ten years.
How Do You Get Around a Non-Compete Agreement in Minnesota?
To get around a non-compete agreement in Minnesota, an employee will have to show that the agreement is unreasonable and the limitations put in place by the contract are more than necessary to protect the employer’s business interests.
Unreasonable terms could include a duration that is too long or a geographic area that is too large. Non-compete agreements will also be deemed unreasonable if the contract is preventing an individual from finding work and earning a living.
What Voids a Non-Compete Agreement in Minnesota?
A non-compete agreement must include consideration to be a legally valid contract. Consideration is when the parties exchange something of value. In some states, courts have ruled that continued employment is sufficient consideration for signing a non-compete, however Minnesota has more strict standards.
In Minnesota, if a non-compete agreement is a separate contract from an employment contract, there needs to be additional consideration in the form of substantial economic benefits. These benefits can include:
- Increased salary
- Promotion
- Guaranteed long term employment
- Professional development
Without additional consideration, a Minnesota non-compete agreement will be void.
Frequently Asked Questions
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Meet some of our Minnesota Noncompete Agreement Lawyers
Michael C.
I offer top-tier legal expertise in startups, corporate governance, and general legal research. As a professor and published author, I have established myself as a legal expert, writer, and scholar. My strong research skills and innovative thinking make me a highly capable business consultant, legal adviser, and copywriter. Currently licensed to practice in Minnesota and Arkansas. Recent freelance projects include business plans, contract drafting, legal advisory memoranda, due diligence, pre-trial motion practice, and discovery review.
"Michael was fast, helpful, and delivered exactly what I asked for!"
Deanna M.
I have had the opportunity to experience the legal industry in a private setting and public sector, representing individuals, companies of all sizes, as well as the Government. As a strong leader, I take pride in continuously tackling new challenges and learning as much as possible, always finding answers and delivering results to my clients. I received my JD from Ave Maria School of Law in Naples, Florida and went on to pass the Uniform Bar Exam. I am currently licensed in Minnesota and North Carolina. I have experience in real estate law, estate planning, contract law, family law, criminal law, and more.
"Deanna is very professional, easy to work with, clarifies doubt quickly, fast turnaround and value for money. I am very happy with the service. I would highly recommend her for any services that she offers."
March 24, 2023
Morgan N.
Morgan is a real estate attorney with six years of experience in residential, land, and commercial real estate transactions. He has experience assisting municipalities, businesses, buyers and sellers in real estate related matters. He has worked on various projects including purchase agreements, contract for deed, easements, mortgages, access agreements, contract/lease review and also title review. Prior to entering private practice, Morgan was a Realtor and assisted buyers and sellers in residential sales and closing services. Morgan provides proactive, responsive and dependable work to each client and project.
August 3, 2023
Noelle S.
I have been practicing law in Minnesota for the past 17 years, in general civil practice. My primary focus is employment law and contracts.
September 6, 2023
Christopher L.
I have worked in banking, financial technology and technology as a legal and compliance executive who negotiates and drafts contracts, ensures products and services comply with applicable regulations, implements policies and procedures, oversees litigation, and manages corporate governance programs.
Hao L.
Florida Licensed Attorney & CFA® Charterholder Specializing in Immigration, Taxation, Aviation, Bankruptcy, Estate & Succession, and Business & Civil Litigation
Misi A.
As a Senior Legal Professional, I have 16+ years experience with extensive background in commercial transactions and as a corporate generalist. I am well versed in contracts lifecycle, risk assessment, compliance, and healthcare regulations. My competencies extend to contract management and detailed project management skills. I have leveraged my legal contracts expertise to mitigate organizational risk, reduce costs, and drive multi-million-dollar revenue increases.
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Employee Rights
Noncompete Agreement
Georgia
How does a noncompete agreement work?
I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.
Nancy B.
In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett
Employee Rights
Noncompete Agreement
New York
Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?
I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?
Damien B.
Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.
Employee Rights
Noncompete Agreement
Texas
Noncompete agreement and moonlighting?
I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.
Curt L.
If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.
Contracts
Noncompete Agreement
Florida
Noncompete agreement choice of law?
I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.
Venus C.
Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.
Employment
Noncompete Agreement
Missouri
Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?
I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?
Matthew S.
No, this at worst is a civil matter and not a criminal matter. F
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