as introduced - 88th Legislature (2013 - 2014) Posted on 02/11/2013 02:23pm
Engrossments | ||
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Introduction | Posted on 02/11/2013 |
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:
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A contract that prohibits a party to that contract from exercising a lawful profession,
trade, or business is void with the following exceptions:
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(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;
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(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
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(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.
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This section is effective the day following final enactment.
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