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Non-Compete Laws in Minnesota

Minnesota makes employee non-competes void and unenforceable, with exceptions only for the sale or dissolution of a business.

Last checked . General information, not legal advice.

Minnesota at a glance

Status
Banned (agreements from July 1, 2023)
Applies to agreements entered on or after July 1, 2023. Exceptions for the sale of a business and in anticipation of dissolution. Nondisclosure and nonsolicitation agreements are not covered.
Enforceable against employees
No
Salary threshold
Not applicable (banned)
Advance notice required
Not applicable (banned)

Sources

Last checked

The rules in Minnesota

Are employee non-compete agreements banned, restricted or enforceable in Minnesota?

Status in Minnesota: Banned (agreements from July 1, 2023). Applies to agreements entered on or after July 1, 2023. Exceptions for the sale of a business and in anticipation of dissolution. Nondisclosure and nonsolicitation agreements are not covered.

Can an employer enforce a non-compete against an employee in Minnesota?

No. Enforceable against employees in Minnesota: no.

Is there a minimum salary for a non-compete to be enforceable in Minnesota?

Salary threshold in Minnesota: Not applicable (banned).

Does Minnesota require employers to give advance notice of a non-compete?

Not applicable (banned). Advance notice required in Minnesota: not applicable (banned).

Where do the Minnesota non-compete laws come from?

The rules above come from Minn. Stat. 181.988. Each source is linked on this page. We last checked them in October 2026.

Good to know

Minn. Stat. 181.988 was enacted in 2023 (2023 c 53 art 6 s 1). It also bars employers from requiring Minnesota-based employees to accept out-of-state law or venue for claims under the section.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.