Foreign Independent Contractor Agreement With Non Compete Clause In Minnesota
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FAQ
It is illegal for an employer to classify a worker as an independent contractor if the worker qualifies as an employee. An employer also cannot make a worker an independent contractor by having workers to sign a contract saying that they are independent contractors, when in reality they are employees.
Restrictive employment covenants; void and unenforceable. (a) No service provider may restrict, restrain, or prohibit in any way a customer from directly or indirectly soliciting or hiring an employee of a service provider. (b) Any provision of an existing contract that violates paragraph (a) is void and unenforceable.
2. NDAs are enforceable when they are signed — if they are properly drafted and executed.
Protecting proprietary information through employee NDAs is not only a best practice but also a legal necessity for businesses in Minnesota.
From a legal perspective, including NDAs in employment agreements in Minnesota strengthens the enforceability of confidentiality obligations. It provides a formal framework for outlining the scope of confidentiality and the consequences of violating the agreement.
On July 1, 2023, Minnesota joined the growing number of states prohibiting employment non-compete agreements, a drastic change for employees and employers operating in the state.
Noncompetes banned: Noncompete and restrictive-franchise provisions in nearly all employee agreements are banned. (both already in effect). The 2024 legislative session went further and banned restrictive employment covenants in service contracts. All of these provisions are already in effect.
In Minnesota, the new law prohibits enforcement of non-competes entered into after July 1, 2023, but leaves existing agreements in place for the nearly 300,000 Minnesotans we estimate had a non-compete before the law passed.
Noncompetes banned: Noncompete and restrictive-franchise provisions in nearly all employee agreements are banned. (both already in effect). The 2024 legislative session went further and banned restrictive employment covenants in service contracts.