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". Compensation might be paid for employees who sign the covenant, or at times the employment might be conditioned upon such an agreement.

When are Covenants not to Compete Unenforceable?

Foreseeing whether or not a judge will uphold a covenant not to compete is generally difficult. While the employer?s interests are significant, Minnesota courts place great weight on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Wyoming that is unreasonably broad.

Non-compete clauses are also limited in that they may only apply to competitors who are rationally related to the industry of the employer. Finally, the employer needs to have an acceptable business purpose which justifies their motives in requiring their employee to sign a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

You might want to hire a Wyoming, Minnesota lawyer to review the covenant before signing any provisions that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.