In the latest installment of LaborSpeak, we discuss Minnesota’s recent law that will render most non-competes entered into on or after July 1, 2023, void and unenforceable. Minnesota is the latest state to take this action, with many others limiting the enforceability of non-competes through legislation and/or the courts. Employers should be aware of these restrictions as they draft non-competes and other restrictive covenants.
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Transcript
Minnesota recently passed the law that will render most non-competes entered into on or after July 1 2023 void and unenforceable it's a lot of fines and non-compete as an agreement that prohibits an employee or independent contractor from working for another employer for a specific period of time working in a specific geographic area performing work for another employer that's similar to the work they perform for their current employer following their termination well that does not prohibit non-solicit non-disclosure or other similar restrictive covenants well.
I will not necessarily impact the enforceability of pre-existing knocking piece there will be two exceptions to the prohibition on non-competes first if the non-compete is agreed to by the seller during the sale of a business it may be enforceable if it's otherwise geographically and temporally reasonable second if the 9p is agreed to as part of the disillusion of a business the owners of the business may agree not to compete in the geographic area where it did business separately the law prohibits employers from acquiring employees who work and live in Minnesota and are involved with any claims arising in Minnesota relating to a non-compete or not from one having to adjudicate those claims outside of Minnesota and two having governing law apply that's less protective than Minnesota law employees who are enforcing the rights under the law may be entitled to injunctive relief and reasonable attorneys fees Minnesota is now the fourth state along with California Oklahoma and North Dakota with a ban on occupies many others have limited the enforceability of these types of agreements through legislation and or the courts in addition to current restrictions numerous bills that either ban or restrict non-competes are being proposed in state legislatures across the country including a bill in New York that would ban occupates the U.S House and Senate are considering similar bills and as discussed on a previous labor speak the FTC recently proposed a ban on knocking Beats this all comes at a time when judges are taking a harder line on non-competes with such an unpredictable non-compete landscape it's becoming more difficult for Employers in certain States war with workers across the country to draft enforceable non-competes if you need help drafting a non-compete or any other restrictive covenant or if you have any questions feel free to contact a member of our team [Music] foreign.