Minnesota non compete law voids employee non competes outright: minnesota voids any covenant not to compete in a contract entered into on or after July 1, 2023; agreements signed before that date are judged under the old reasonableness test. Non disclosure and non solicitation agreements are not covered by the ban.
This guide gives the exact Minnesota non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Minnesota Department of Labor and Industry, Labor Standards or an attorney before you rely on it.
Minnesota Non Compete Law at a Glance
| Status | Banned — employee non competes are void |
| Income threshold | No earnings threshold |
| Statute | Minn. Stat. 181.988 |
| Notice / consideration | No statutory notice rule |
| Carve-outs | Sale of a business and dissolution of a business (temporary, geographically limited covenants); non disclosure and non solicitation agreements are outside the… |
| Overbroad terms | void — the covenant is unenforceable, the rest of the contract survives, and a court may award the employee attorney fees |
| In effect since | July 1, 2023 (2023 Minn. Laws ch. 53, art. 6, s. 1) |
In This Minnesota Non Compete Law Guide:
Is a Non Compete Enforceable Under Minnesota Non Compete Law?
Minnesota voids any covenant not to compete in a contract entered into on or after July 1, 2023; agreements signed before that date are judged under the old reasonableness test. Non disclosure and non solicitation agreements are not covered by the ban. The statute is Minn. Stat. 181.988.
The carve-outs matter: sale of a business and dissolution of a business (temporary, geographically limited covenants); non disclosure and non solicitation agreements are outside the ban; the ban also covers independent contractors.
Minnesota Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with Minnesota Department of Labor and Industry, Labor Standards or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Banned — employee non competes are void |
| What the rule says | Minnesota voids any covenant not to compete in a contract entered into on or after July 1, 2023; agreements signed before that date are judged under the old reasonableness test. Non disclosure and non solicitation agreements are not covered by the ban. |
| Income threshold | No earnings threshold |
| Statute | Minn. Stat. 181.988 |
| Carve-outs | Sale of a business and dissolution of a business (temporary, geographically limited covenants); non disclosure and non solicitation agreements are outside the ban; the ban also covers independent contractors |
| What a court does with an overbroad term | void — the covenant is unenforceable, the rest of the contract survives, and a court may award the employee attorney fees |
| In effect since | July 1, 2023 (2023 Minn. Laws ch. 53, art. 6, s. 1) |
The Reasonableness Test Under Minnesota Non Compete Law
For agreements that Minnesota’s current statute does not cover, such as older agreements, courts use a common-law reasonableness test. The court asks whether the employer has a real interest to protect, such as trade secrets, confidential information or customer goodwill. It then asks whether the length, geographic area and type of work restricted go no further than that interest requires.
Courts also weigh the hardship to the worker against the benefit to the employer, and they view these agreements skeptically because they restrict a person’s ability to earn a living.
Under older case law, Minnesota courts have more often upheld restrictions of about one to two years that are limited to the employer’s actual sales territory or the customers the worker personally handled.
Courts have struck down or cut back restrictions that cover broad regions, bar all work in an industry or last longer than the employer’s interest justifies, and a Minnesota court may shorten an overbroad term instead of voiding it. With an overbroad term the court will void — the covenant is unenforceable, the rest of the contract survives, and a court may award the employee attorney fees.
Minnesota Non Compete Law If You Were Fired or Laid Off
No Minnesota statute makes enforcement depend on whether a worker was fired, laid off or quit. A court weighing the fairness of an older agreement may consider a termination without cause as a factor, but a layoff does not automatically void the agreement, so confirm with a Minnesota employment lawyer.
What the Employer Must Give Under Minnesota Non Compete Law
Minnesota is stricter than most states here: a non compete signed after the job has already started must be supported by new and independent consideration. Continued employment alone is not enough, and courts have pointed to things like a raise, promotion, bonus or real job advantages the worker would not otherwise have received.
Non Solicit and Non Disclosure Agreements Under Minnesota Non Compete Law
Non solicit and non disclosure agreements are treated separately from non competes in Minnesota. They are generally easier to enforce because they only limit taking customers, coworkers or confidential information, not the worker’s ability to work in their field, but they must still be reasonable in scope and length.
If You Already Signed One: Minnesota Non Compete Law in Practice
Find your signed copy and read the exact terms, including the date you signed, the length, the area, which activities are restricted and whether it says Minnesota law governs. Before accepting a new offer, check whether the new job actually triggers the restriction, and consider asking your former employer in writing for a release or waiver.
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Have a Minnesota employment lawyer review the agreement, especially its date, because when it was signed can determine which rules apply.
For an enforceable agreement, a Minnesota employer can ask a court for a temporary restraining order or injunction that stops the competing work. In 2025 a federal court in Minnesota granted a 90-day restraining order on an agreement signed before the current law.
Employers can also seek money damages, and attorney fees if the agreement provides for them, while a court may award an employee reasonable attorney fees for enforcing their rights under the statute.
The Federal Rule and Minnesota Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Minnesota non compete law controls. In 2025, bills in the Minnesota Legislature that would have added exceptions for higher-paid workers (S.F. 3288 and H.F.
1768) were not enacted, and the existing law stayed in place. Also in 2025, a federal court in Minnesota ruled that the current statute is not retroactive and enforced an agreement signed in 2005.
Other Minnesota Non Compete Law Rules to Know
An employer cannot require a worker who mainly lives and works in Minnesota, as a condition of the job, to agree to another state’s law or to resolve claims outside Minnesota. Separately, Minnesota case law says that if a non compete is presented only after a new hire has accepted the job, it generally needs independent consideration to be enforceable.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
Minnesota — the bottom line
- Minnesota non compete law is a ban: employee non competes are void — the first thing to check is which side of the line your agreement falls on.
- Under Minnesota non compete law, an overbroad term is void — the covenant is unenforceable, the rest of the contract survives, and a court may award the employee attorney fees — the words of your own agreement decide more than the headline rule.
- Minnesota non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in Minnesota?
No — under Minnesota non compete law employee non competes are void. Minnesota voids any covenant not to compete in a contract entered into on or after July 1, 2023; agreements signed before that date are judged under the old reasonableness test. Non disclosure and non solicitation agreements are not covered by the ban.
Is there an income threshold under Minnesota non compete law?
No. Minnesota has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a Minnesota court do with an overbroad non compete?
Void — the covenant is unenforceable, the rest of the contract survives, and a court may award the employee attorney fees.
Can my employer enforce a non compete in Minnesota after firing me?
No Minnesota statute makes enforcement depend on whether a worker was fired, laid off or quit.
I signed a non compete in Minnesota and have a new offer — what should I do?
Find your signed copy and read the exact terms, including the date you signed, the length, the area, which activities are restricted and whether it says Minnesota law governs.
Official Minnesota Sources & Resources
- Minnesota Department of Labor and Industry, Labor Standards: https://www.dli.mn.gov/business/employment-practices/final-wages
- Minnesota non compete statute (Minn. Stat. 181.988): https://www.revisor.mn.gov/statutes/cite/181.988
- Verified source: https://www.revisor.mn.gov/statutes/2025/2025-10-19%2011:49:32+00:00/cite/181.988/pdf
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- Minnesota bar lawyer referral: https://www.mnbar.org/public
This Minnesota non compete law guide was last verified against official Minnesota sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Minnesota Workplace Rights Guides
- Minnesota Final Paycheck Law: Deadlines and Penalties
- Minnesota Wrongful Termination Laws: When a Firing Is Illegal
- Minnesota At Will Employment Law: The Exceptions
- Minnesota Labor Laws: Every Rule in One Place
- Unemployment and Workplace Rights Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.