Minnesota Restrictive Covenants Update: What Constitutes Solicitation?

The Minnesota Legislature's ban on new noncompetition agreements in 2023 has caused the state's employers to rely more heavily on other legal means to protect their businesses from unfair competition by departing employees. In particular, the ban has forced Minnesota businesses to focus more on nonsolicitation agreements, i.e., agreements that prohibit an employee from soliciting the employer's customers for a certain period of time after leaving employment. That renewed emphasis, in turn, has caused employers and employees alike to consider the specific parameters of "solicitation" under such agreements. Three decisions by the federal district court in Minnesota have shed light on how the courts will approach this evolving issue.