Although noncompetes are subject to constraints and may invite the scrutiny of the courts, their use remains one of the primary ways in which a business can protect itself from damaging competition when a key employee departs. Employers concerned about the elimination of their ability to enter into such agreements may wish to consider contacting their legislators about this pending legislation, or may choose to work with a lobbyist to resist its passage. Meanwhile, noncompetes remain valid in Minnesota for the time being, provided they are reasonably limited in scope and narrowly tailored to protect an employer’s goodwill and confidential or trade secret information.
One alternative means of achieving protection is through the use of confidentiality and nondisclosure agreements, which can be effective in conjunction with nonsolicitation clauses that prohibit former employees from soliciting the business’s customers and employees for a competitor.
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