Minnesota Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what Minnesota requires; the download is our standard non-compete template, to be scoped to Minnesota's rules below.
Minnesota non-compete rules at a glance
| Enforceability | Banned for agreements signed on or after July 1, 2023 (Minn. Stat. §181.988). |
|---|---|
| Protected workers / thresholds | All employees and independent contractors |
| Required formalities | Sale-of-business and dissolution exceptions only; choice-of-law workarounds barred |
| Overbroad agreements | Void; pre-July 2023 agreements remain under old reasonableness case law |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How Minnesota handles non-compete agreements
Minnesota's ban created a two-regime state: the signing date decides everything, and the statute blocks employers from contracting around it with another state's law for Minnesota-based workers. The practical drafting rule for Minnesota: banned for agreements signed on or after July 1, 2023 (Minn. Stat. §181.988).. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
Minnesota non-compete agreement FAQs
Are non-compete agreements enforceable in Minnesota?
Banned for agreements signed on or after July 1, 2023 (Minn. Stat. §181.988). Coverage limits matter here: all employees and independent contractors.
What happens to an overbroad non-compete in Minnesota?
Void; pre-July 2023 agreements remain under old reasonableness case law Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a Minnesota non-compete require?
Sale-of-business and dissolution exceptions only; choice-of-law workarounds barred Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in Minnesota?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in Minnesota or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.