Dan Prokott Covers Minnesota Ban on Non-Competes With Twin Cities Business

Twin Cities Business turned to labor and employment partner Dan Prokott for insight on Minnesota becoming the fourth state to ban non-competes.

The publication noted that California, North Dakota and Oklahoma have banned post-employment non-compete agreements to the same degree as the new Minnesota law. Prokott explained that other states had passed laws to protect lower-wage employees by restricting prohibitive covenants based on compensation level.

“The fact that an employee living and working in California is not able to be bound by a non-compete agreement…is absolutely one of the considerations that employers will look at regarding candidates,” Prokott said.

Prokott noted that one provision might go further than simply banning outside companies from enforcing non-competes on Minnesota employees, given the vagueness of the wording in that particular section could also apply to any contract agreement. He stated, “Does that mean that the limitation provision only applies to a non-compete agreement, which is already prohibited by the new law? Or does it apply more broadly to any agreement or contract?”