What Voids a Non Compete Agreement Mn

A non-compete agreement is a legal contract that prohibits an employee from working for a competitor or starting a competing business after leaving their current employer. In Minnesota, non-compete agreements are valid and enforceable, but only under certain circumstances. If a non-compete agreement does not satisfy certain requirements, it can become void and unenforceable. This article will cover what voids a non-compete agreement in Minnesota.

Unreasonable Time Period

A non-compete agreement must specify the duration of the restriction on employment. In Minnesota, a non-compete agreement must be reasonable in duration, meaning it cannot last longer than is necessary to protect the employer`s legitimate business interests. Generally, a duration of six months to one year is considered reasonable, but it can depend on the specific circumstances of the case. If a non-compete agreement has an unreasonably long duration, it may be found void.

Unreasonable Geographic Scope

A non-compete agreement must also specify the geographic area where the restriction on employment applies. In Minnesota, a non-compete agreement must be reasonable in scope, meaning it cannot restrict the employee from working in areas where the employer does not have a legitimate business interest. If a non-compete agreement has an unreasonably broad geographic scope, it may be found void.

No Legitimate Business Interest

A non-compete agreement must protect the employer`s legitimate business interests, such as trade secrets, confidential information, and customer relationships. In Minnesota, a non-compete agreement must be necessary to protect the employer`s legitimate business interests. If a non-compete agreement is overly broad and restricts the employee`s ability to work in fields unrelated to the employer`s business, it may be found void.

Unlawful Conduct

A non-compete agreement cannot require an employee to engage in unlawful conduct, such as stealing trade secrets or violating antitrust laws. If a non-compete agreement requires an employee to engage in illegal behavior, it is void and unenforceable.

Failure to Provide Consideration

A non-compete agreement must be supported by consideration, such as a signing bonus or a promotion. In Minnesota, the consideration must be sufficient to support the restriction on employment. If a non-compete agreement does not provide sufficient consideration, it may be found void.

In summary, a non-compete agreement in Minnesota may be found void if it has an unreasonable time period or geographic scope, does not protect the employer`s legitimate business interests, requires unlawful conduct, or fails to provide sufficient consideration. It`s important to consult with a qualified attorney to ensure that a non-compete agreement is valid and enforceable.