Bill > HF1768

This bill modifies Minnesota's existing law regarding covenants not to compete (legal agreements that restrict employees from working for competing businesses after leaving their current job) by creating specific exceptions to the current blanket prohibition. Under the proposed changes, non-compete agreements would become valid and enforceable in three specific scenarios: first, for high-earning employees (those making $120,000 annually) whose primary duties involve research and development or management of confidential/proprietary information; second, for any employee earning $500,000 or more annually regardless of job duties; and third, during the sale of a business or in anticipation of a business dissolution, where partners or shareholders agree to reasonable geographic and time-based restrictions. The bill also maintains that if a non-compete clause is found invalid, other provisions in the contract remain enforceable, and it allows courts to award attorney fees to employees successfully challenging improper non-compete agreements. This legislation aims to provide more nuanced protections for both employers seeking to protect sensitive business information and employees' rights to work in their chosen field, while setting clear income and job responsibility thresholds for when such agreements can be legally binding.

Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1768&ssn=0&y=2025