Non-Compete Agreement in Minnesota
State-specific overview · Employment Law
Minnesota enforces non-competes under a reasonableness standard but requires they protect legitimate business interests and impose no undue hardship on employees.
How Minnesota treats Non-Compete Agreement
Minnesota courts enforce non-compete agreements when they protect trade secrets, confidential business information, or customer relationships and are reasonable in time, area, and line of business. The state applies a balancing test weighing the employer's legitimate interests against the employee's right to work and earn a livelihood. Restrictions are commonly enforced for periods up to two years, though shorter periods are more readily upheld. Courts consider whether the restriction is necessary to protect the employer's interests and whether it imposes undue hardship on the employee or the public.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Minnesota.