Non-competes are mostly gone in Minnesota. That doesn’t mean the problem is.
Minnesota changed the law in 2023, and for most employers, non-compete agreements are no longer enforceable.
That part is clear.
What’s less clear — and what we’re still seeing — is how businesses have adjusted since then.
Some are still using the same agreements they’ve always used. Others removed non-competes and didn’t replace them with anything. And in a lot of cases, the documents in place don’t actually protect what the business thinks they do.
The issue isn’t the law anymore. It’s how people are responding to it.
Where Employers Are Still Getting It Wrong
Still using agreements that don’t work anymore
This is probably the most common issue.
We still see agreements with non-compete language that simply isn’t enforceable under current Minnesota employment law. Sometimes it’s buried in an old template. Sometimes it’s carried over from a prior agreement without much thought.
The bigger problem is what comes with that.
If you think you’re protected — and you’re not — you don’t usually find that out until an employee leaves and something actually happens.
Assuming there’s nothing left to use
Some employers went the opposite direction. Non-competes went away, so they assumed there wasn’t much left to work with.
That’s not really how it plays out.
There are still ways to protect things like:
- client relationships
- internal information
- how your business actually operates
But those protections have to be structured differently. And they need to be tailored to how your business actually runs — not pulled from a generic form.
This is where having a clear approach to employment law agreements and policies starts to matter more than it used to.
Relying on templates that don’t reflect the business
A lot of employment agreements start as templates. That’s not the problem.
The problem is when they stay that way.
Over time, businesses change — new services, different roles, more employees, different risks. The agreement doesn’t always keep up.
What you end up with is a document that looks complete, but doesn’t line up with how things actually work. And when something goes wrong, that gap matters.
Not being clear about what’s actually confidential
Confidentiality agreements are still enforceable. But they only work if they’re clear.
We often see language that’s too broad or too vague — “confidential information” without much explanation of what that actually includes.
That becomes an issue when you try to enforce it.
If your business relies on client lists, pricing, internal systems, or processes, those need to be defined clearly in your agreements — not assumed.
Not thinking through what happens when someone leaves
Most agreements focus on getting someone hired. Fewer focus on what happens when that person leaves.
That’s usually where the problems show up.
Questions like:
- What information can they take with them?
- What are they allowed to do with existing clients?
- What obligations continue after employment ends?
If those answers aren’t clear ahead of time, you’re left trying to sort them out after the fact — when your options are more limited.
What Still Works Under Minnesota Law
Non-competes aren’t the tool they used to be, but that doesn’t mean you’re unprotected.
There are still a few key ways to protect your business — they just need to be done right.
Non-solicitation agreements
These focus on a narrower issue: preventing former employees from actively going after your clients, customers, or employees.
They’re more targeted than non-competes, and when they’re structured properly, they’re still generally enforceable.
Confidentiality agreements
These are often more important than employers realize.
They control how sensitive information is used and shared — and they give you a basis to act if that information is misused.
Clear agreements and policies
In many cases, the biggest protection isn’t a restriction — it’s clarity.
When expectations are clearly defined up front, there’s less room for confusion later. That applies to:
- roles and responsibilities
- ownership of work
- use of company information
- what happens when employment ends
This is a big part of how businesses manage risk through employment law planning and compliance, even without non-competes.
Why This Still Matters
The risk didn’t go away when non-competes did. It just shifted.
Now, instead of relying on one broad restriction, protection comes from how well your agreements are put together.
And in most cases, the issues don’t show up right away. They show up when:
- an employee leaves
- a client relationship changes
- information gets used in a way you didn’t expect
At that point, everything comes back to what your agreements actually say.
When It’s Worth Taking a Closer Look
If your agreements haven’t been updated in a while, it’s probably worth reviewing them.
That’s especially true if:
- you’re still using older templates
- you haven’t revisited them since the law changed
- your business has grown or shifted
- you’re not entirely sure what protections are in place
You don’t need to overhaul everything. But small gaps in these documents can turn into larger issues later.
Let’s Talk About Your Employment Agreements
If you’re not sure whether your current agreements reflect Minnesota law — or whether they actually protect your business — it’s worth taking a closer look.
At Klemp & Stanton, we work with employers to put clear, practical agreements in place that match how their business actually operates.
Our initial consultation is free. Contact us online to schedule a time to walk through your current agreements and where there may be gaps.
Frequently Asked Questions
Are non-compete agreements completely illegal in Minnesota?
Not entirely, but for most employees and most new agreements, they are generally unenforceable under current Minnesota law.
Can I still protect my client relationships?
In many cases, yes. A properly structured non-solicitation agreement can limit how former employees interact with your clients after they leave.
Do confidentiality agreements still hold up?
Yes — as long as they’re clearly written and tailored to your business. Vague or overly broad language can make them harder to enforce.
Is it okay to keep using my current employment agreement?
Maybe. But if it hasn’t been reviewed recently, there’s a good chance it includes outdated language or misses areas that matter now.
What’s the biggest mistake employers are making right now?
Assuming they’re protected when their agreements haven’t been updated — or not realizing where the gaps are until something goes wrong.