Minnesota - Restrictive Covenants

The Minnesota Legislature’s ban on new noncompetition agreements in 2023 has caused the state’s employers to rely more heavily on other legal means to protect their businesses from unfair competition by departing employees. In particular, the ban has forced Minnesota businesses to focus more on nons

On May 24, 2023, Minnesota Governor Tim Walz signed into law a sweeping omnibus jobs and economic development and labor funding bill that will invest $500 million in a fund to match federal investments in infrastructure and large-scale development projects. This bill also fundamentally changes sever

Bill advancing in Minnesota would ban most non-compete agreements between employers and employees or independent contractors. Non-solicitation and confidentiality non-disclosure agreements would still be permissible. If enacted, the sweeping ban would take effect July 1, 2023, but would not be retro

The Minnesota federal district court recently refused to enforce a non-compete agreement, in part, because the employer failed to establish that the agreement was supported by valuable consideration.

he popularity of craft beers has skyrocketed. A report cited in Fortune claims that microbreweries’ market share increased from 5.7 percent in 2011 to 12 percent in 2015. This growth has led to competition as microbreweries capitalize on the growing appetite for their product. Unsurprisingly, compet

In Patterson Dental Supply, Inc. v. Vlamis (Sept. 6, 2016), the Minnesota Court of Appeals reminded that employees who reside and work outside of Minnesota may still be hailed into Minnesota courts to defend their actions.

The District of Minnesota issued an interesting decision on June 9, 2015 in the case of BMC Software, Inc. v. Mahoney, No. 15-CV-2583 (PAM/TNL). Mahoney was a Sales Manager for BMC and responsible for the Midwest Region. Around the time he was promoted into that role, he signed a non-compete agreeme

The Minnesota Supreme Court has affirmed lower court findings dismissing a claim of tortious interference with contract by a staff augmentation company that successfully sued a former employee and his new employer for breach of a non-compete agreement. Sysdyne Corp. v. Rousslang, et al, No. A13-0898

A federal court in Minnesota has rebuffed a plea by the founders of medical device company Rochester Medical to invalidate five year non-competes they signed in connection with the sale of their business to C.R. Bard, Inc. Conway v. C.R. Bard, Inc. (D. Minn. Feb. 12, 2015). Plaintiffs argued that th

The Minnesota Supreme Court has affirmed an arbitrator’s eye-popping award of $525 million plus prejudgment interest totaling $96 million and post-award interest in a trade secrets dust up between Seagate Technology, LLC and Western Digital Corporation, et al. Seagate Technology, LLC v. Western Digi

We have previously written about tolling provisions on this blog. In a decision from the U.S. District Court for the District of Minnesota, Judge Patrick J. Schiltz held that, under Minnesota law, non-compete terms do not automatically reset upon violation. The decision in U.S. Water v. Watertech of