The Clause About Working Elsewhere
Minn. Stat. 181.988 — a covenant not to compete is void
In Minnesota, any covenant not to compete contained in a contract or agreement is void and unenforceable, except in the sale or dissolution of a business. Employees include independent contractors for this purpose.
What the ban does not cover. A covenant not to compete does not include a nondisclosure agreement, an agreement protecting trade secrets or confidential information, or a nonsolicitation agreement restricting the use of client lists or soliciting the employer's customers.
Minnesota law and a Minnesota court. An employer may not require an employee who primarily lives and works in Minnesota to agree to resolve a Minnesota claim outside the state, or to give up the protection of Minnesota law. A court may award an employee enforcing these rights reasonable attorney fees.
| The assumption | What the law actually does |
|---|---|
| The assumptionA noncompete just has to be reasonable | What the law actually doesVoid and unenforceable, outside the sale or dissolution of a business |
| The assumptionThe ban covers confidentiality agreements too | What the law actually doesNondisclosure and nonsolicitation agreements are outside it |
Non-solicitation and confidentiality agreements, trade secret law and the sale of a business follow rules of their own and are not all on this page. Whether a particular clause is enforceable is a question for a licensed Minnesota attorney.
Sources for this section (1)
- Minn. Stat. 181.988 — Covenants not to compete void in employment agreements
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Minnesota attorney.