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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March 6, 2017 Minnesota Lawyer - Sponsored Blog Author: Steven Kerbaugh and Katie Koehler Over the past decade, the United States Supreme Court has repeatedly held that the Federal Arbitration Act (“FAA”) preempts state laws on arbitration. For example, in 2011 the Supreme Court struck down California law regarding the unconscionability of class-arbitration waivers in AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011). Similarly, the Supreme Court concluded in 2015...
