E Pluribus Unum - Out of Many, One

Understand that you have other tools to protect trade secrets. These instruments include adequate training and safety. These protocols, as well as others, can protect confidential information without employees being required to sign non-compete contracts. Two years after joining a medical group in the 1980s, his bosses approached Jensen with a non-compete agreement and he gave him few thoughts. I was told that if Jensen left, he could not train within 15 km of the clinic for a year. In the long run, Minnesota could upset the non-competition paradigm. Our state could be the first in the country to require professions or industries to require withdrawal to justify their restrictions on employment. Three states (including neighboring North Dakota) completely prohibit non-compete bans, but this solution helps bridge the gap between a total ban and reasonable housing. The free movement of workers and fair compensation are, in theory, characteristics of our economic system and we can make them a reality. In Minnesota, no-work agreements are viewed as disadvantages and carefully considered. However, non-competition prohibitions apply when they serve a legitimate employer interest and are no more comprehensive than necessary to protect that interest. The Minnesota courts determine the adequacy of non-competition clauses on a case-by-case basis, so there is no specific standard. Cases like this are becoming more common as more and more companies accept non-competition measures without properly assessing their needs.

But the debate continues, as new examples of extreme non-competition emerge and more governments act. Some estimates indicate that one in five U.S. jobs is now covered by a non-compete regime. In very narrow circumstances, the Minnesota courts will find consideration for a non-compete “Mid-Stream” agreement without consideration if the employee subsequently receives compensation or benefits that would not have been granted to the employee without the non-competition agreement. If, for example, the employer has retained the worker for many years or decades after the implementation of the non-competition agreement or has placed the worker in a high-level position if he relies on the worker`s non-compete agreement, the courts may find an appropriate consideration. As a general rule, however, the courts require the employer to prove that the worker received a useful consideration at the time the contract was concluded (not after the conclusion). Home – Article – Validity of Non-Competition Obligations in Minnesota At his first meeting as a state advocate, Sen. Scott Jensen, a chaska physician, introduced a bill to prevent hospitals and clinics from imposing unauthorized agreements on physicians. Minnesota medical device companies have generated many pioneering cases in the field of non-competition. The unprecedented decision in Medtronic, Inc. v. Petitti, no A18-0010, 2018 WL 3520858 (23 July 2018) may be different.


Comments are closed.