Minnesota Court of Appeals Enforces Employment Agreement

In a notable win for the employers of Minnesota, the Court of Appeals just issued an opinion affirming an employer's summary judgment win against an ex-employee.

The employer engaged the employee pursuant to an agreement whereby the employee was required to repay certain costs of relocation and bonus money if the employee was terminated within two years of starting employment. The employee was in fact terminated by the employer within two years based on allegations of misconduct at the employee's last job. The employer demanded the pro-rata bonus money and the relocation expenses over $120,000.

The employer won quite decisively. In reading the opinion, the employee didn't have much of an argument on the merits. The employee's arguments were more theoretical in nature and not based upon the contract or the letters exchanged.

Employers face a tough landscape in enforcing restrictive employment agreements. This opinion is a good win for the employer. If you want recourse against your employees, a crystal clear agreement and following the law are critical.

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