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

Additionally, the bill clarifies that nothing in this subdivision will render other provisions in a contract containing a void or unenforceable covenant invalid. It also 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