<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Enforcing Non-Compete Agreements</span>
11/24/2021

Enforcing Non-Compete Agreements

There's a lot of media on the substantial number of people resigning from the workforce.  They have to go somewhere though, don't they?   People may leave a job thinking they will go into something radically different, get a fresh perspective, but over time that will prove much more difficult than anticipated.  What will they do?  A portion of them will return to the industry they left.  Enter the Noncompete.
 
Under Minnesota law, the enforceability of a noncompete agreement “depends upon numerous circumstances” and “cannot always be determined by an examination of the contract itself.” Instead, the enforceability “must be determined on its own facts and a reasonable balance must be maintained between the interests of the employer and the employee.” A noncompete agreement is enforceable when it is (1) necessary to protect the employer’s business or goodwill, (2) is not more restrictive than is reasonably necessary considering “the nature and character of the employment” and the duration and geographic scope of the restriction, and (3) “not injurious to the public.”  Walker Emp. Serv., Inc. v. Parkhurst, 219 N.W.2d 437, 441 (Minn. 1974).  In other words, determining the enforceability of a noncompete provision requires a court to consider the circumstances of the underlying employment.
As you can see from this law, enforcement is very fact specific.  The most important fact is the reasonableness of the agreement itself.  You can't be greedy and you have to be fair.  If that's the case, you are off to a good start.
 
I've litigated these agreements a number of times.  With that experience, I can help you get a strong analysis on your likelihood of enforcement.  Put my experience to good use and let's figure out your options.

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