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MN HF4376
Bill
Status
3/11/2020
Primary Sponsor
Jennifer Schultz
Click for details
AI Summary
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Declares all covenants not to compete void and unenforceable in Minnesota employment agreements, with narrow exceptions.
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Permits non-compete agreements only if the employee earned annual salary at least equal to the median family income for a four-person family in Minnesota and the employer pays at least 50 percent of the employee's highest annualized base salary during the entire restricted period.
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Prohibits employers from requiring Minnesota-based employees to agree to provisions that would require disputes to be adjudicated outside Minnesota or deprive them of substantive Minnesota law protections.
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Allows courts to award reasonable attorney fees to employees enforcing rights under the statute and voids any violating contract provisions at the employee's request.
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Effective the day following final enactment and applies to contracts and agreements entered into on or after that date.
Legislative Description
Non-compete covenants provided as void and unenforceable, and protection of substantive provision of law provided to apply to matters arising in Minnesota.
Last Action
Author added Olson
3/12/2020