Minnesota is not exempt from the growing movement to limit the use of non-compete provisions in employment agreements.  Other states have already severely limited the use of such non-competes and the Federal Trade Commission proposed such a rule on January 5, 2023.  Similar bills are now working through the Minnesota state legislature.  It is too early to tell what the final form would be of any bill that might be signed into law.  That being said, among other details, the current version of  HF 295 provides that non-competes would be void for any employment agreement where the employee does not have an annual salary that exceeds the median family income for a four-person family in Minnesota (approximately $80,000) unless the employer agrees to pay the former employee at least 50% of their base salary for the duration of the non-compete period.

If you are an employer or an employee it will be important for you to keep up with potential changes in state and federal non-compete law.  If you have any questions about non-competes, feel free to contact us at ContactUs@ssmnlaw.com or (952)404-2100.