This bill amends Minnesota Statutes 2024, section 181.988, subdivision 2, to establish additional circumstances under which a covenant not to compete can be considered valid and enforceable. Specifically, it introduces new criteria that allow such covenants for employees earning an annual budgeted compensation of $120,000 or more if their primary duties involve research and development or management related to confidential information. Additionally, it permits covenants for any employee earning $500,000 or more, regardless of their job duties. The bill also modifies existing provisions regarding covenants related to business sales and partnerships.

Furthermore, the bill clarifies that other provisions in contracts containing void or unenforceable covenants remain valid. It allows courts to award reasonable attorney fees to employees enforcing their rights under this section. The new legal language specifies that the amendments will take effect the day following final enactment.

Statutes affected:
Introduction: 181.988