MN HF295

Employers cannot require employees earning at or below the median family income for a four-person family in Minnesota to sign covenants not to compete.

Covenants not to compete are defined as agreements preventing employees from working for another employer, in a specified geographic area, or in a similar capacity after termination.

Agreements not to solicit employees or clients, confidentiality agreements, trade secret protections, invention assignments, and business sale agreements are excluded from the covenant not to compete restrictions.

Employers cannot require Minnesota-based employees to agree to dispute resolution outside Minnesota or to waive Minnesota law's substantive protections for matters arising under this section, unless the employee is individually represented by legal counsel in negotiations.

Employees enforcing rights under this section may be awarded reasonable attorney fees in addition to injunctive relief and other available remedies; effective the day following final enactment for contracts entered into on or after that date.