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ARTICLE · 01 JUNE 2023

Gopher State Goes For Broke With Non-Compete Ban

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Minnesota is joining the growing list of state legislatures targeting non-compete agreements, and doing so with one of the most aggressive laws in the nation on the subject.

United StatesEmployment and HR
Kevin Mahoney
Kevin Mahoney
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Minnesota is joining the growing list of state legislatures targeting non-compete agreements, and doing so with one of the most aggressive laws in the nation on the subject. Included as part of the Senate Jobs and Economic Development and Labor Omnibus Budget Bill (S.F. 3035), the newly-enacted Minn. Stat. Section 181.988 ("Section 181.988") categorically bans non-compete agreements with Minnesota workers subject to a few narrow exceptions. Section 181.988 also takes the approach adopted by Colorado and Washington in prohibiting out-of-state choice of law and forum provisions in employment agreements containing non-compete provisions. The omnibus bill passed the legislature on May 15, 2023, was signed by Governor Tim Walz on May 24, 2023, and will become effective on July 1, 2023. While Section 181.988's ban on non-compete provisions is not retroactive, any company with employees or independent contractors in Minnesota has just over a month to ensure that their

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