Banned statewide
Minnesota Non-Compete Law (2026): Void for all employees
Since July 1, 2023 an employment non-compete signed in Minnesota is void, and the rule applies to independent contractors as well as employees, with no floor or ceiling on pay. Two situations sit outside it — covenants given by the seller in a sale of a business and covenants among owners on dissolution — and confidentiality, trade-secret and non-solicitation agreements are untouched. An employer cannot route around the ban by writing another state's law or forum into the contract for a Minnesota-based worker.
The rule
How Minnesota treats non-compete agreements
The prospective-only design matters more than most summaries admit: pre-July-2023 covenants are still live and still judged under the old reasonableness test. The anti-evasion provision is also unusually blunt — a choice-of-law or venue clause pointing out of state is stripped out for anyone who mainly lives and works in Minnesota.
If you are an employer
Stop drafting employment non-competes for Minnesota staff and lean on NDAs, trade-secret protection and customer non-solicits instead, because an attempt to enforce can leave you paying the employee's legal fees.
If you are a worker
Anything you signed on or after July 1, 2023 that restricts where you can work next is unenforceable in Minnesota, and if an employer sues to enforce it you may recover your attorney's fees.
| Classification | Total ban on employment non-competes |
|---|---|
| Pay threshold | Not applicable. The ban runs to every worker regardless of pay, seniority or title — there is no executive or highly-compensated exception. |
| Maximum term | Zero for covered agreements. An employment non-compete signed on or after July 1, 2023 is void from the outset; the sale-of-business and dissolution exceptions still require reasonable time and geography. |
| Notice or consideration | None, because the covenant simply has no legal effect. Employers cannot cure the problem with better disclosure or more consideration. |
| Primary statute | Minn. Stat. § 181.988; see also Minn. Stat. § 181.9881 |
A covenant signed in another state
Minnesota voids out-of-state choice-of-law and forum-selection clauses for workers who primarily live and work there, under Minn. Stat. § 181.988(3). Signing in a friendlier jurisdiction does not rescue a covenant once Minnesota law applies.
Detail
What has changed, and what is still moving
Legislation 2024–2026
Minn. Stat. § 181.988 took effect July 1, 2023. The follow-on measure was in 2024, not 2025: SF 3852 created Minn. Stat. § 181.9881, effective July 1, 2024, which bars a service provider from restricting its customer's ability to solicit or hire the provider's employees — the 'shadow non-compete' problem in staffing and outsourcing deals — subject to a narrow carve-out for computer-software consulting placements. Nothing further passed in 2025 or 2026.
Bills to watch
No significant restrictive bills pending; the 94th Legislature has adjourned sine die and the existing ban leaves little to add.
Leading cases
Minnesota's older reasonableness decisions still control agreements predating July 1, 2023, but for anything signed since, the statute answers the question before the case law is reached. No appellate decision has yet narrowed § 181.988.
If you have one in hand
What can make a non-compete unenforceable in Minnesota
- The statute itself. Minnesota voids employment non-competes, so the clause fails without any argument about how reasonable it is.
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Minnesota.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Minnesota non-compete questions
Are non-compete agreements enforceable in Minnesota?
Since July 1, 2023 an employment non-compete signed in Minnesota is void, and the rule applies to independent contractors as well as employees, with no floor or ceiling on pay. Two situations sit outside it — covenants given by the seller in a sale of a business and covenants among owners on dissolution — and confidentiality, trade-secret and non-solicitation agreements are untouched. An employer cannot route around the ban by writing another state's law or forum into the contract for a Minnesota-based worker.
How long can a non-compete last in Minnesota?
No length is enforceable. Minnesota voids employment non-competes whatever their duration, so a three-month restriction fails on the same ground as a three-year one. The exceptions are tied to ownership, not employment.
Is there a minimum salary for non-competes in Minnesota?
No, and it would not help. The Minnesota ban is pay-blind: it protects a minimum-wage worker and a senior executive on exactly the same terms.
What notice or consideration does Minnesota require?
None, because the covenant simply has no legal effect. Employers cannot cure the problem with better disclosure or more consideration.
Can an out-of-state employer enforce a non-compete against a Minnesota worker?
Often not. Minnesota voids out-of-state choice-of-law and forum-selection clauses for workers who primarily live and work there, under Minn. Stat. § 181.988(3). A covenant signed elsewhere can still fail once Minnesota law applies.
Sources
How this entry was checked
- Primary source. Minn. Stat. § 181.988; see also Minn. Stat. § 181.9881 — the statutory text itself.
- Secondary sources consulted. Minn. Stat. § 181.988 and § 181.9881 (Minnesota Revisor of Statutes), Ogletree, Lathrop GPM, Fafinski Mark & Johnson, Holland & Hart, Foley & Lardner.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.