A 2023 state law prohibits noncompete clauses in most employment contracts. As of July 1, 2023, noncompetition provisions are no longer enforceable against Minnesota employees or independent contractors in most situations.The test they apply is a balancing of interests. A. Minnesota Courts Disfavor and Heavily Scrutinize Non-Competes. Non-compete agreements in the employment context are generally disfavored. New Minnesota legislation bans noncompete agreements entered into after July 1, 2023, but does not apply to existing agreements. Minnesota has recently passed a bill banning noncompetition agreements ("noncompetes") within the state. Essentially, noncompete clauses limit an employee's opportunity to excel in whatever skill or trade they're familiar with.