In general, covenants not to compete involve an employee in the state of Minnesota who agrees not to work for competitors of their employer when they leave the company. Such covenants are often called "non-compete" clauses". Signing such an agreement can either be a condition for being employed, or the employee may receive additional compensation for doing so.
When are Covenants not to Compete Unenforceable?
Whether or not a judge will conclude that the covenant is enforceable can be challenging to know beforehand. While employer's interest are important, the courts of Minnesota also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. Those agreements that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Becker that are unreasonably large.
Non-compete clauses are also limited in that they may only apply to competitors who are rationally related to the industry of the employer. Lastly, an employer is required to have a legitimate business reason in its motivation for imposing a covenant not to compete on an employee.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you might want to hire a Becker, Minnesota attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or might even draft a new one that is acceptable to both parties When it comes to suing an employee for breach of a non-compete clause, an attorney can provide valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.