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Minnesota Legislature

Office of the Revisor of Statutes

HF 506

as introduced - 88th Legislature (2013 - 2014) Posted on 02/11/2013 02:23pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5
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A bill for an act
relating to commerce; regulating employment agreements; voiding certain
noncompete agreements; proposing coding for new law in Minnesota Statutes,
chapter 325D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325D.72] NONCOMPETE AGREEMENTS VOID.
new text end

new text begin A contract that prohibits a party to that contract from exercising a lawful profession,
trade, or business is void with the following exceptions:
new text end

new text begin (1) a seller of a business' goodwill can agree to refrain from carrying on a similar
business in a specified county, city, or part of one of them if the buyer carries on a like
business in that area;
new text end

new text begin (2) partners dissolving a partnership can agree that one or more of them will not
carry on a similar business in a specified county, city, or part of one of them where the
partnership transacted business; and
new text end

new text begin (3) a member, when dissolving or terminating their interest in a limited liability
company, can agree that the member will not carry on a similar business in a specified
county, city, or part of one of them where the business has been transacted if another
member or someone taking title to the business carries on a like business in that area.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end