Non-compete agreements are common parts of employment contracts that limit where, when, and how a worker can seek future employment. If you have signed a non-compete agreement with your employer and are now pursuing other employment, it’s natural to feel unsure about how to approach it. At Amicus Law, in St. Paul, Minnesota, we help workers look at these contracts with clarity so they can make choices that protect their livelihood.
If you're facing restrictions on job mobility or future career decisions, don't wait to seek legal guidance. Our attorneys can talk you through what non-compete agreements involve and help you shape a path that supports your long-term goals. Located in St. Paul, Minnesota, we serve clients throughout Minneapolis and Greater Minnesota.
Key Components of a Non-Compete Agreement
Non-compete agreements are designed to protect an employer’s business interests, including confidential information, trade secrets, and customer relationships. This is commonly achieved by including clauses that restrict an employee’s ability to solicit or hire other employees from the company. The key components of a non-compete agreement that you should be aware of include the following:
Restricted activities: This section outlines what an employee is prohibited from doing after leaving the company, such as performing similar job duties or offering competing services.
Geographic scope: This defines the physical area where the restrictions apply. The scope can range from a specific radius around the employer's location to a specific county, an entire state, or a broader region.
Time limitation: The agreement will specify the duration of the non-compete period, defining how long an employee must wait before engaging in restricted work.
Definition of a competitor: This clause clarifies what the employer considers a “competing business.” The definition is often broad and can encompass more than just direct competitors.
Consequences of violation: This section details the legal actions an employer can take if they believe the former employee has breached the agreement.
Understanding these components is the first step in evaluating whether the terms of a non-compete agreement are reasonable or overly restrictive.
How To Effectively Handle a Non-Compete Agreement
If you are considering leaving your job, the non-compete agreement is often a central factor in deciding what’s next. This step feels similar to how workers evaluate benefits when changing jobs, i.e., considering how these restrictions will impact their transition.
Workers often assess whether the future job counts as competition, whether the new employer is aware of the agreement, whether relocation is an option, and how long they’re willing to wait. If you are unsure of how your company's non-compete agreement applies to you, consider taking the following actions.
Communicate With Your Employer
Talking with your employer about the non-compete agreement can feel challenging, but a straightforward conversation often helps clarify intentions and expectations. Try approaching the topic the same way you would discuss any workplace concern.
Be prepared and have a clear goal, such as asking for clarification, discussing possible adjustments, and requesting written confirmation of verbal statements. This communication can often mitigate potential ambiguities, especially if the agreement would limit your ability to seek gainful employment in another job.
Engage in Negotiation Strategies
Negotiating a non-compete agreement doesn’t have to be adversarial. Similar to how workers discuss salary or benefits, these negotiations revolve around finding terms that don’t unfairly restrict you while still addressing the employer’s concerns. Some strategies you can employ include the following:
Point out your role: If you didn’t handle sensitive information or client lists, that may justify limiting the restrictions of the agreement.
Request a shorter time period: Many agreements can often be negotiated or reduced to a shorter term.
Ask to narrow the geographic area: Local restrictions are often easier to justify than state our country-wide limitations.
Clarify your job functions: Consider requesting that only certain job duties be considered competitive under the agreement.
Seek alternative protections: Some employers may accept a confidentiality agreement instead of a broad non-compete agreement.
Negotiating the terms of the agreement or receiving clarification about the scope of the non-compete can help you move on to plan for future job changes.
How Enforcement Works and What Workers Should Know
As of July 1, 2023, Minnesota banned new non-compete agreements for employees and independent contractors. Any such agreements signed on or after this date are void and unenforceable, unless they are related to the sale or dissolution of a business. In 2024, the Federal Trade Commission announced that non-compete agreements are no longer enforceable at the federal level.
As you take steps toward signing a new job, it's important to understand the potential enforcement actions for non-compete agreements in Minnesota. The typical enforcement actions for agreements signed before the 2023 ruling might include:
Requests for clarification from the employer: These letters often ask the worker or the new employer for information.
Cease-and-desist notices: These letters warn the worker about alleged violations.
Court filings: Employers sometimes ask a court to stop a worker from taking or keeping a job that might count as restricted employment.
If you are faced with an enforcement action by your current employer, remain calm and contact an experienced business law attorney who can help you explore your options.
How to Protect Yourself Before Signing Future Agreements
After leaving your current job and starting a new one, it's common to want to avoid facing difficulties with a non-compete agreement. Reviewing your future contracts early can help you stay aware of potential restrictions. Some helpful strategies to protect your interests include:
Read your new contract fully: Even if the contract's terms appear familiar, new language may introduce additional limits.
Ask questions before accepting a job offer: Clarifying any potential restrictions early can help avoid complications later.
Request changes during the hiring process: Employers sometimes adjust the terms of an agreement for strong candidates.
Compare the contract to the industry norms: Conduct thorough research to discover whether similar companies also use non-compete agreements.
Keep all employment records: Maintaining accurate documentation can help if the agreement becomes an issue in the future.
How an Attorney Can Help
Sometimes workers face unclear terms, pressure from an employer, or a new job opportunity that might conflict with the agreement. When that happens, reaching out to a lawyer helps workers understand their options. An experienced business attorney can often help with non-compete agreements under various circumstances, such as when:
Your former employer threatens legal action
You receive a cease-and-desist letter
You aren’t sure whether your new job violates the contract
The terms of the agreement seem too broad
Your former employer disputes your interpretation of the agreement
Contact an Experienced Business Attorney in St. Paul, Minnesota
Non-compete agreements can be challenging to handle. If a non-compete agreement is affecting your job search or current employment, you don't need to manage it on your own. Our experienced attorneys at Amicus Law are ready to help you review your options.
Located in St. Paul, Minnesota, we serve clients throughout Minneapolis and Greater Minnesota. Contact us today to schedule a consultation. Let’s talk about your situation and find a practical way to move forward.
