No New Noncompetes

06.16.2023 Written by: Business Law Department

Warning to employers: A notable shift in employment law regarding the regulation of noncompete agreements has been passed by the Minnesota Legislature. Learn more about these changes and how they will affect your business moving forward.

No New Noncompetes: Effective July 1, 2023, any noncompete agreements agreed and entered into on or after July 1, 2023, will be considered void and unenforceable. This new law applies to non-profit organizations as well as for-profit businesses.

What Does it Mean?

The ban applies to all employees or independent contractors’ agreements, regardless of the person’s income, from working for another business after termination of employment, including:
– for a specified period of time,
– in a specified geographic area, or
– for another employer in a capacity similar to the employee’s work for employer party to the agreement.
Noncompetes during employment are still valid.
The ban is not retroactive and will hold any noncompete provisions entered into before July 1, 2023, as valid and enforceable.
If the noncompete provision is rendered unenforceable, the remaining contract or agreement will still be valid and enforceable but without an enforceable noncompete provision.

What Can You Still Do?

Employers can still use noncompetes:
– in the sale of a business, or
– in anticipation of the dissolution of a business.

Employers can still use non-competes during the time of the employee’s employment.
Employees will still be subject to the following agreements:
– Nondisclosure,
– Confidentiality,
– Trade secret, and
– Non-solicitation.

Henningson & Snoxell Can Help

Please contact us with any questions or concerns regarding employee protections. We can utilize the tools mentioned above to protect your business and organizations.

In addition, please keep an eye out for more updates regarding the other new employment laws passed this session.

FRONTLINE WORKER PAYMENTS: Immediate Impact on Employers

06.07.2022 Written by: Henningson & Snoxell, Ltd.

To thank those Minnesotans who worked on the frontlines during the COVID-19 peacetime emergency, Gov. Tim Walz signed Frontline Worker Payments into law April 29, 2022, enabling those workers to apply for Frontline Worker Pay. If you employed these workers, please pay close attention to the information below as it requires your immediate action.

Do your business or non-profit organizations fall under any of the following sectors?

Long-term care and home care
Health care
Emergency responders
Public health, social service, and regulatory service
Courts and corrections
Childcare
Schools, including charter schools, state schools, and higher education
Food service
Retail
Temporary shelters and hotels
Building services
Public transit
Ground and air transportation services
Manufacturing
Vocational rehabilitation

If so, you have a maximum of 15 days once the application period opens to provide notice in a form approved by the Commissioner of Minnesota’s Department of Labor and Industry. This application period opens on June 8^th. The notice must tell all current workers who may be eligible for payments under this law about such payments and how to apply for them. A notice that meets this obligation has been posted at frontlinepay.mn.gov.

Note that this notice must be provided using the same means that you use to provide other work-related notices to employees. Additionally, the notice must be at least as conspicuous as posting a copy of the notice at each work site where workers work and where the notice may be readily observed and reviewed by all workers working at the site or providing a paper or electronic copy of the notice to all workers. In other words, it should either be visible to all workers or provided to each worker individually via email or paper copy,

If your employees have questions regarding the application process, direct them to frontlinepay.mn.gov.

If you are a current client of the firm, give us a call at 763-560-5700 if you have questions on any of the above information.

If you are new to the firm and have questions you would like us to address, please reach out to any of our business or nonprofit law attorneys.

How the FFCRA Affects Businesses with Less than 50 Employees

03.31.2020 Written by: Henningson & Snoxell, Ltd.

How the Families First Coronavirus Response Act Affects Businesses with Less than 50 Employees

[Update to this post here – 4/3/2020]

More COVID-19 Resources

Are you a business owner with fewer than 50 employees (for a profit, nonprofit or religious organization)? Are you confused about the specific criteria required to claim an exemption to the expanded leave provisions of the Family’s First Coronavirus Response Act (FFCRA)? If so, you’re not alone. Recently, the U.S. Department of Labor provided much-needed information and guidance.

(more…)

Family and Medical Leave Expansion under the FFCR Act

03.27.2020 Written by: Henningson & Snoxell, Ltd.

The new Families First Coronavirus Response (FFCR) Act was signed into law last week, and business owners are wondering how it affects them. How does the new emergency expanion of Family and Medical Leave under this law affect you? We’ve put together an infographic to help you navigate the information.