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: Samantha Buckman Counsel faced with potential claims that may be either direct or derivative have always had to use caution to overcome procedural and substantive hurdles. The Minnesota legislature replaced the prior LLC Act (the MLLCA) with the Minnesota Revised Uniform Liability Company Act (RULLCA) in 2014. While the RULLCA preserved many rules, it also codified some longstanding Minnesota LLC common law....
