Are Non-Competes Enforceable in Minnesota?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Banned
Void for employees and contractors since July 1, 2023
Minnesota voids every covenant not to compete in agreements entered into on or after July 1, 2023, for both employees and independent contractors. The only exceptions are covenants made in connection with the sale or dissolution of a business. Nondisclosure, trade-secret and customer non-solicitation agreements are not covered. Employers cannot make Minnesota-based workers litigate elsewhere or under another state's law, and courts may award attorney's fees.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Likely unenforceable
Based on what you entered, a Minnesota court would most likely refuse to enforce this non-compete.
- Minnesota: Void for employees and contractors since July 1, 2023. Minn. Stat. 181.988
Other Minnesota rules to check
- Non-solicitation clauses: Nondisclosure, trade-secret, confidentiality and non-solicitation agreements (including limits on using client lists or soliciting customers) are not covenants not to compete.
- Choice of law and venue: An employer may not require a worker who primarily lives and works in Minnesota to adjudicate a claim outside Minnesota or give up Minnesota law; such a clause is voidable by the worker.
- If a court finds it too broad: Not applicable — covenant is void.
- Penalties: Courts may award attorney's fees and injunctive relief to a worker enforcing the law.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Minnesota non-compete rules
- Independent contractors
- Covered by the statute.
- Non-solicitation
- Nondisclosure, trade-secret, confidentiality and non-solicitation agreements (including limits on using client lists or soliciting customers) are not covenants not to compete.
- Choice of law / venue
- An employer may not require a worker who primarily lives and works in Minnesota to adjudicate a claim outside Minnesota or give up Minnesota law; such a clause is voidable by the worker.
- Overbroad covenants
- Not applicable — covenant is void
- Penalties
- Courts may award attorney's fees and injunctive relief to a worker enforcing the law.
Profession-specific rules
- VoidService providers (such as staffing or contracting firms) may not restrict a customer from soliciting or hiring the provider's employees or contractors (software-consulting placements intended to become permanent are exempt). (effective July 1, 2024) Minn. Stat. 181.9881
Recent and pending changes
- July 1, 2024: Service-provider no-hire ban (181.9881) applies to contracts entered into on or after this date. 2024 Minn. Laws ch. 110
- July 1, 2023: Non-compete ban (181.988) takes effect for agreements entered into on or after this date. 2023 Minn. Laws ch. 53
Pending: HF 1768 / SF 3288 (2025), which would allow non-competes for certain highly paid employees, stalled in committee and were not enacted.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Minnesota?
Void for employees and contractors since July 1, 2023. Minnesota voids every covenant not to compete in agreements entered into on or after July 1, 2023, for both employees and independent contractors. The only exceptions are covenants made in connection with the sale or dissolution of a business. Nondisclosure, trade-secret and customer non-solicitation agreements are not covered. Employers cannot make Minnesota-based workers litigate elsewhere or under another state's law, and courts may award attorney's fees.
Did the FTC ban non-competes in Minnesota?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Banned): California, North Dakota, Oklahoma
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Minnesota? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Minnesota.