['Recruiting and hiring']
['Non-Compete Agreements']
04/04/2024
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Summary of differences between federal and state regulations
Law bans noncompete agreements
On May 24, 2023 the state enacted a labor bill (SF 3035) that prohibits employers’ use of noncompete agreements, effective July 1, 2023.
The ban does not apply retroactively to noncompetes signed prior to July 1, 2023.
Minnesota defines a noncompete as an agreement that restricts a former employee’s ability to:
- Work for another employer for a specified period of time,
- Work in a specified geographical area, or
- Work for another employer in a capacity similar to the employee’s work for the employer that is party to the agreement.
The definition excludes agreements intended to protect trade secrets.
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