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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August 27, 2018 Minnesota Lawyer - Partner Content Author: Arthur G. Boylan For seemingly run-of-the-mill breach of contract cases where someone refuses to pay based on a technicality, things may have just gotten more complicated. After all, the question of whether a particular provision was material and the question of whether the forfeiture is proportionate are likely fact questions reserved for the jury. The doctrine of disproportionate forfeiture is alive and...
