The Governor of Minnesota has signed into law a new noncompete ban. The ban applies to agreements entered on or after July 1, 2023.
The new law voids all noncompete agreements for employees and independent contractors except for those entered into in conjunction with the sale or dissolution of a business. The definition of noncompetes excludes non-disclosure and non-solicitation covenants. The law also limits the use of choice of law and forum-selection clauses against individuals who primarily work or reside in Minnesota, so those cannot be used to circumvent the impact of the law on Minnesota workers or residents.
This is yet another development in the growing assault on the use of noncompetes.
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