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By Melissa Muro LaMere

On May possibly 24, 2023, Minnesota Governor Tim Walz signed SF 3035, banning all noncompete agreements entered into on or soon after July 1, 2023. Minnesota now joins the developing list of states putting important limitations on the use of restrictive covenants in employment. Right here are six important points each company with Minnesota workers demands to know about the new law:

  • All post-employment noncompetes are prohibited beginning July 1, 2023.
  • The law applies to each personnel and independent contractors.
  • Noncompetes in impact through employment are not impacted.
  • The new law is not retroactive – noncompetes entered into ahead of July 1, 2023 are not impacted.
  • Buyer non-solicitation and employee non-solicitation agreements are not impacted (but if the provision functions like a noncompete, it will be banned even if it is named a non-solicit).
  • Bans non-Minnesota decision-of-law and decision-of-venue provisions for noncompete agreements.
  • Employers with Minnesota personnel or independent contractors must take into account functioning with employment counsel to make certain their agreements and processes are compliant with the new law, and that the company is effectively-positioned to guard its important relationships and confidential facts in light of this important modify to Minnesota law. 

    Melissa is admitted to practice law in Minnesota and is not admitted in California or any other state.

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