Minnesota Lawyer and Finance & Commerce – Partner Content Author: Cody Nickel On July 1, 2023, Minnesota became the fourth state to ban non-compete agreements. This past session, in S.F. 3852, the legislature sought to close a loophole it had identified in the 2023 ban: non-solicitation provisions between service providers and their customers, referred to by some as “shadow” non-compete agreements. Effective July 1, 2024, this legislation banned the inclusion of restrictive employment covenants in contracts between service providers and their customers. Minn Stat. § 181.9881, Subd. 1, 2(a). The provision is retroactive. Any existing provision in violation of this statute is void and unenforceable. Minn. Stat. § 181.9881, Subd. 2(b). Furthermore, service providers with any such existing provisions have an affirmative obligation to inform their...
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Minnesota Lawyer and Finance & Commerce - Partner Content Author: Phil J. Kaplan Most commercial leases provide for a broad range of remedies that the landlord can exercise if the tenant defaults. Sometimes, the lease allows the landlord to accelerate and immediately recover all of the breaching tenant’s rent for the balance of the lease term. A tenant who is subject to a rent acceleration clause may question whether...
