Today I’m discussing proposed changes to noncomplete agreements in Minnesota.

Under the current law, noncomplete agreements are enforceable if they are fairly bargained for, if there’s adequate consideration, and if the geographic and temporal restrictions are reasonable. Under proposed legislation, noncomplete agreements are going to be void in the State of Minnesota, except for three distinct exceptions: a business owner selling his/her goodwill, a member of an LLC selling his/her interest, or a partnership dissolving.

If this legislation passes, it’s going to be a dynamic change to Noncomplete Agreement Law in Minnesota. The proposed legislation is silent on non-solicitation and confidentiality agreements. I recommend that all Minnesota employers review their noncomplete agreements to ensure that they will not become void under the proposed legislation.

If you would like an attorney to review your noncomplete agreements to ensure that a non-solicitation or confidentiality clause can remain, please contact an attorney today.