MN noncompetes: void and unenforceable for agreements after July 1, 2023.
Minnesota became the fourth state with a complete ban on post-employment noncompete agreements when SF 3035 was signed on May 24, 2023 (effective July 1, 2023). Joining California, Oklahoma, and North Dakota in the no-noncompete club, Minnesota's law makes any post-employment noncompete agreement signed on or after July 1, 2023 void and unenforceable. The ban is narrow in scope: it only covers post-employment restrictions on competing employment. Nondisclosure agreements, non-solicits, trade-secret protections, client-list restrictions, and confidentiality provisions remain enforceable. The carve-outs are also narrow: only agreements in connection with the sale or anticipated dissolution of a business are permitted.
Noncompete Ban Compliance Workflow
Validates employment agreements for noncompete provisions. Permits NDAs, non-solicits, trade-secret protections, client-list restrictions. Blocks new noncompete provisions in onboarding documents.
What those rules do at agreement creation and review.
The hero card configuration: Block on noncompetes, Flag on permitted alternatives, Avoid on venue manipulation.
When an employment agreement is created or signed for a worker primarily working/living in Minnesota, any noncompete provision (post-employment restriction on competing employment) is blocked. Agreements containing noncompetes will not save without the provision removed.
Nondisclosure agreements, non-solicitation agreements (customer or employee), trade-secret protections, client-list restrictions, and confidentiality provisions remain enforceable in Minnesota. These can be drafted separately and remain operational.
Employers cannot require workers primarily working/living in Minnesota to agree to venue or governing law outside Minnesota. Such provisions are unenforceable and may void the related agreement provisions. Out-of-state venue clauses surface as Avoid for review.
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Post-employment noncompete = void; alternatives still allowed.
Minnesota's law specifically targets post-employment competition restrictions, leaving the broader restrictive-covenant toolkit (NDAs, non-solicits, trade-secret protection) intact.
Definition of noncompete
Minn. Stat. § 181.988 defines a noncompete as an agreement that restricts a former employee from: (1) working for another employer for a specified period of time; (2) working in a specified geographical area; or (3) working for another employer in a capacity similar to the employee's work for the employer that is party to the agreement. The definition only encompasses POST-EMPLOYMENT restrictions — restrictions during current employment (e.g., exclusivity provisions) are not covered.
Effective date and retroactivity
The ban took effect July 1, 2023 and applies to agreements entered into on or after that date. Noncompetes signed before July 1, 2023 are not nullified by the new law — they remain subject to existing common-law and statutory analysis. The ban is purely prospective.
Teambridge validates restrictive covenants in agreements and blocks new noncompetes.
The 2023 ban is narrow in scope but absolute: noncompetes are void, period. The protective toolkit shifts to NDAs, non-solicits, and trade-secret protection.
Restrictive covenants reviewed.
When an employment agreement is created or signed, restrictive covenants are reviewed. Noncompetes (post-employment competition restrictions) are blocked; NDAs, non-solicits, trade-secret protections are permitted.
July 1, 2023 cutoff applied.
Agreements signed before July 1, 2023 are not affected by the new law. Agreements signed on or after that date are subject to the noncompete ban. Date validation gates the analysis.
Choice-of-law/venue clauses checked.
For workers primarily living/working in MN, agreements requiring out-of-state venue or governing law are flagged. These are unenforceable for MN workers and may void related provisions.
Permitted noncompetes documented.
When a noncompete is included in a sale-of-business or dissolution context, the carve-out is documented. Standard employee onboarding agreements default to no noncompete.
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