Are Non-Competes Enforceable in Minnesota? Your Rights Explained

In Minnesota, any non-compete agreement signed on or after July 1, 2023 is void and unenforceable. Under Minnesota Statutes section 181.988, an employer cannot legally stop you from taking a new job, starting a competing business, or working for a competitor anywhere in the state, no matter how much you earn or what your job title is. This is one of the strongest worker protections in the country: Minnesota did not just limit non-competes for low-wage workers the way some states do, it banned them for almost everyone. If your employer hands you a non-compete today and tells you that you cannot leave to work for a competitor, that promise is generally not enforceable against you.

What Minnesota's Non-Compete Ban Actually Says

The 2023 law makes any "covenant not to compete" entered into on or after July 1, 2023 void and unenforceable. The statute defines a covenant not to compete as an agreement that restricts an employee or independent contractor, after the working relationship ends, from working for another employer, working in a particular geographic area, or working in a similar capacity for another employer.

A few important features of the law:

• It covers everyone, regardless of pay. Some states (such as Washington, Illinois, and Oregon) only ban non-competes for workers below a salary threshold. Minnesota set no income floor. A high-earning executive and a minimum-wage worker have the same protection.
• It covers independent contractors, not just employees. If you are a 1099 contractor in Minnesota, the ban protects you too.
• It blocks out-of-state workarounds. Employers cannot dodge the law by writing the contract to be governed by another state's law or to require lawsuits in another state. For a worker who primarily lives and works in Minnesota, the law voids a choice-of-law or choice-of-venue clause that would deny them Minnesota's protections.
• Workers can recover attorney fees. If an employer tries to enforce a void non-compete and you have to fight it, a court may award you your reasonable attorney fees.

What Is NOT Banned

The Minnesota ban is specifically about non-competes. It does not wipe out every restriction an employer might put in a contract. The following remain legal and can still bind you:

• Nondisclosure and confidentiality agreements (NDAs). Your employer can still require you to keep trade secrets and confidential business information private.
• Trade secret protections. Minnesota's trade secret law still applies, and you cannot lawfully take or use a former employer's trade secrets.
• Non-solicitation agreements. Agreements that limit you from soliciting the company's customers or recruiting away its employees are not defined as non-competes under the statute and can still be enforced if otherwise reasonable.

Be careful here: some employers try to write a "non-solicitation" clause so broadly that it functions as a back-door non-compete. If a clause is written so widely that it effectively prevents you from working in your field at all, a court may treat it as a disguised non-compete and refuse to enforce it.

There are also two narrow situations where non-competes remain valid. The ban does not apply to a non-compete agreed to during the sale of a business (where the seller agrees not to compete with the buyer) or one agreed to in anticipation of the dissolution of a business. These exceptions are for business owners, not for ordinary employees.

What About Non-Competes Signed Before July 1, 2023?

The ban is not retroactive. It applies to contracts entered into on or after July 1, 2023. If you signed a non-compete before that date, it is not automatically void. Instead, it is judged under Minnesota's older common-law rules, which courts applied for decades before the statute.

Under that common-law test, a pre-2023 non-compete is only enforceable if it:

• Protects a legitimate business interest, such as trade secrets, confidential information, or customer goodwill, rather than simply shielding the employer from ordinary competition;
• Is reasonable in scope, meaning the time limit and geographic area are no broader than necessary; and
• Is supported by adequate consideration. In Minnesota, if you were asked to sign after you already started the job, the employer generally had to give you something of real value (beyond just keeping your job) for the agreement to hold up.

Minnesota courts have historically been willing to "blue pencil" overbroad pre-2023 agreements, meaning a judge could narrow an unreasonable restriction rather than throw it out entirely. So even an older non-compete may be narrower than it looks on paper.

The Federal Baseline

There is currently no nationwide federal ban on non-competes. The Federal Trade Commission issued a rule in 2024 that would have banned most non-competes across the country, but a federal court set that rule aside before it took effect, so it is not in force. That means non-compete enforceability is still decided state by state, and the rules vary dramatically. California, North Dakota, Oklahoma, and Minnesota broadly ban them; many other states still enforce reasonable ones. Because Minnesota's ban is far stronger than the federal status quo, Minnesota workers have protection that workers in many other states do not.

What to Do If You Are Asked to Sign or Threatened

If a Minnesota employer asks you to sign a non-compete today, keep these points in mind:

• A new non-compete is generally unenforceable. Signing it does not make it valid, but you are not required to sign an unlawful term. You can ask the employer to remove it, and you can point out that the statute makes it void.
• Watch for disguised restrictions. Read non-solicitation and confidentiality clauses closely. Those can still bind you, so make sure they are not so broad that they keep you out of your profession.
• Do not take documents or data. The ban frees you to compete, but it does not let you take confidential files, customer lists, or trade secrets. Leaving those behind protects you from a separate lawsuit.
• Keep a copy of everything you sign. Save offer letters, contracts, and any agreement that mentions competition, solicitation, or confidentiality.

If a former employer threatens to sue you or sends a cease-and-desist letter over a post-2023 non-compete, do not panic and do not quit a new job out of fear. A threat is not a court order. Because you may be entitled to recover attorney fees if the employer tries to enforce a void agreement, the law is structured to discourage exactly this kind of intimidation. Consider talking to an employment lawyer who handles Minnesota non-compete disputes; many offer free or low-cost initial consultations.

Where to Verify This Information

For official information about Minnesota workplace laws, start with the Minnesota Department of Labor and Industry (DLI), the state's main labor and workforce agency, and the Minnesota Attorney General's Office, which provides consumer and worker resources. The non-compete ban itself lives in Minnesota Statutes section 181.988, which you can read on the Minnesota Office of the Revisor of Statutes website. Because non-compete enforcement is decided in civil court rather than by a state agency, complicated disputes usually require a licensed Minnesota attorney. Verify any specific numbers, deadlines, or rule changes directly with these official sources before relying on them, since employment laws can be amended.

Official Minnesota Sources

This page is based on Minnesota employment law. Rules and figures change — verify the current details directly with the official Minnesota sources below. This is general legal information, not legal advice.

• Minnesota Department of Labor and Industry - Labor Standards — official Minnesota agency.
• File a Wage Claim - Minnesota Department of Labor and Industry
• Minnesota Statutes Chapter 177 - Minnesota Fair Labor Standards Act (Minimum Wages)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Minnesota state law.