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ARTICLE · 16 MARCH 2022

Minnesota Advances Partial Ban On Non-Compete Clauses

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On February 22, 2022, the Minnesota legislature came one step closer to banning non-compete clauses under certain circumstances.

United StatesEmployment and HR
Ian Long
Ian Long
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On February 22, 2022, the Minnesota legislature came one step closer to banning non-compete clauses under certain circumstances. On that date, the Minnesota House Labor, Industry, Veterans and Military Affairs Finance and Policy Committee passed HF999.

HF999 renders non-compete clauses in Minnesota void and unenforceable unless either of two circumstances are present: (1) upon termination, the employee earned an annual salary that is more than the median family income for a family of four in Minnesota (as determined by the most recent US Census Bureau data), or (2) the employer agrees to pay, on a pro-rata basis, fifty percent of the employee's highest annual salary over the past two years for the duration that the employee is subject to the non-compete clause.

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