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SF 3288

Additional circumstances provision under which a covenant not to compete is valid and enforceable

2025-2026 Regular Session Introduced by Jordan Rasmusson

Minnesota bill expands when employers can enforce non-compete agreements, potentially restricting workers' ability to change jobs or start competing businesses after leaving employment.

Referred to Labor
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Bill Summary · SF 3288

Legislative bill overview

SF 3288 expands the circumstances under which non-compete agreements are valid and enforceable in Minnesota. The bill adds conditions to existing law that currently restricts non-compete covenants, creating additional exceptions or scenarios where employers can enforce restrictions on workers competing with them after employment ends.

Why is this important

Non-compete agreements directly affect worker mobility and job prospects, influencing whether employees can take similar positions with competitors or start their own businesses. This expansion could significantly limit workers' career options while potentially benefiting employers seeking to protect business interests, making it a notable shift in Minnesota's competitive labor market regulation.

Potential points of contention

  • Worker mobility vs. business protection: Broader non-compete enforcement restricts workers' ability to change jobs or start businesses, potentially reducing labor market competition and wage growth for employees
  • Fairness and bargaining power: Workers often have limited ability to negotiate non-compete terms when employment conditions are already set, raising concerns about unequal bargaining positions
  • Economic impact ambiguity: The bill's specific additional circumstances aren't detailed in available information, making it unclear whether changes are narrow or sweeping, and how they align with recent national trends toward restricting non-competes

Compiled from official sources — confirm details with the bill’s official record.

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