A bill was proposed in the Minnesota House of Representatives this month which would void most noncompete agreements in Minnesota, including those in employment contracts. While the bill does include exceptions for certain circumstances, it does not include any exception to restrict the employment opportunities of former employees by an employer.
The proposed HF 506 reads as follows:
325D.72 Noncompete Agreements Void
A contract that prohibits a party to that contract from exercising a lawful profession, trade, or business is void with the following exceptions:
- A seller of a business’ goodwill can agree to refrain from carrying on a similar business in a specified county, city, or part of one of them if the buyer carries on a like business in that area;
- partners dissolving a partnership can agree that one or more of them will not carry on a similar business in a specified county, city or part of one of them where the partnership transacted businesses; and
- a member, when dissolving or terminating their interest in a limited liability company, can agree that the member will not carry on a similar business in a specified county, city, or part of one of them where the business has been transacted if another member or someone taking title to the business carries on a like business in that area.
If you have questions about how this bill would effect your rights, contact a Minneapolis employment lawyer with LeBlanc Law and Mediation at 612-819-9652.
