Bill > SF3288

This bill modifies Minnesota's existing law on covenants not to compete (legal agreements that restrict an employee from working for a competitor) by establishing new circumstances under which such agreements can be valid and enforceable. Specifically, the bill allows non-compete agreements for two types of high-compensation employees: (1) those earning at least $120,000 annually who work in research and development or manage teams involved in creating or analyzing confidential or proprietary information, and (2) any employee earning at least $500,000 annually, regardless of their job duties. The bill also maintains existing provisions that allow non-compete agreements during the sale of a business or in anticipation of a business dissolution, where such agreements are geographically and temporally reasonable. Additionally, the bill preserves other contract provisions even if a non-compete clause is found unenforceable and allows courts to award attorney fees to employees enforcing their rights under this statute. The effective date of the bill is the day after it is finally enacted, potentially giving employers new options for protecting their business interests while providing some protections for employees.

Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3288&ssn=0&y=2025