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Non-Compete Agreements

Non-Competes in Minnesota:

Non-Competes have become commonplace in the workplace in Minnesota and can be burdensome to employees and an effective way for employers to protect their business, employees, confidential information and trade secrets.  It is a myth that non-competes can’t be enforced against an employee and prevent the employee from working in a job that competes with their former employer.

If an employee signs a valid non-compete it could be enforced against the employee if the employee takes a position that competes with the employee’s previous employer.  If the employee doesn’t take a position that competes with the previous employer and doesn’t take any action that causes any damages or is not likely to cause damages to the previous employer it is unlikely that a non-compete would be enforced against the employee.  There are many ways that the non-compete could be flawed and it is important to discuss this with an employment attorney before signing the non-compete or when the employee is thinking about taking a new position that may compete with the previous employer.

In Minnesota, employment non-compete agreements are looked upon with disfavor and are cautiously considered and carefully scrutinized.  However, non-compete agreements are enforceable if they serve a legitimate employer interest and are not broader than necessary to protect this interest.

In determining whether to enforce a non-compete agreement or provision, the court balances the employer’s interest in protection from unfair competition against the employee’s right to earn a livelihood.  If the employer’s interest outweighs the employees, the non-compete agreement is valid and enforceable.

You should contact an experienced employment attorney if you have questions regarding a non-compete agreement. Contact Holden Law Firm and ask to speak to John Holden to discuss your employment law questions.

John C. Holden, Esq.
Holden Law Firm
12800 Whitewater Drive, Suite 100
Minnetonka, MN 55343
952-943-3960
John@holdenlawfirm.com
www.holdenlawfirm.com

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