1.1 	A bill for an act
1.2 	relating to commerce; regulating employment agreements; voiding certain 
1.3 	noncompete agreements;proposing coding for new law in Minnesota Statutes, 
1.4 	chapter 325D.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [325D.72] NONCOMPETE AGREEMENTS VOID.
1.7 	A contract that prohibits a party to that contract from exercising a lawful profession, 
1.8 	trade, or business is void with the following exceptions:
1.9 	(1) a seller of a business' goodwill can agree to refrain from carrying on a similar 
1.10 	business in a specified county, city, or part of one of them if the buyer carries on a like 
1.11 	business in that area;
1.12 	(2) partners dissolving a partnership can agree that one or more of them will not 
1.13 	carry on a similar business in a specified county, city, or part of one of them where the 
1.14 	partnership transacted business; and
1.15 	(3) a member, when dissolving or terminating their interest in a limited liability 
1.16 	company, can agree that the member will not carry on a similar business in a specified 
1.17 	county, city, or part of one of them where the business has been transacted if another 
1.18 	member or someone taking title to the business carries on a like business in that area.

1.19 	EFFECTIVE DATE. This section is effective the day following final enactment.