Everything You Wanted to Know About Minnesota’s Non-Compete Clause Ban But Were Afraid to Ask

During the 2023 legislative session, the Minnesota Legislature voted to ban the use of non-compete clauses from employment contracts. Put simply, a non-complete clause allows a former employer to restrict a former employee’s future employment if they deem that it is in competition with them. A non-compete clause in a contract essentially reduces an employee’s bargaining power, and therefore market value, because their current employer is limiting an employee's ability to market their services to a competitor.  

Since the passage of the bill, we have gotten several questions from SAG-AFTRA members about what non-compete clauses mean and how the legislation affects them.

What has changed when it comes to non-competes?

Non-compete clauses (also known as “covenants not to compete”) in employment contracts were made “void and unenforceable.” You can find full text of the legislation at this link then scroll down to line 66.10.

If I have one in my personal services contract now, is it null and void?

Yes.  

Do I need to do anything to confirm that it doesn’t apply anymore?

It’s always helpful to reach out to your shop steward (if you work at a SAG-AFTRA station) and union staff with any questions. Please email twincities@sagaftra.org.

Can an employer still take you to court if you violate your contract?

It depends on what the violation is. If it is on the grounds of a non-compete violation, it would be difficult, but as always, it’s always best to consult with union staff if you have questions.

How did the change happen?

The bill, SF 3035, was signed into law in May 2023. SAG-AFTRA got involved in the legislation because it was important to our members specifically and because it was the right thing to do for workers in Minnesota in general.

Could non-compete clauses be reinstated?

It would take a separate piece of legislation passed by the state Legislature and signed by the governor. But just as SAG-AFTRA was active in the passage of this bill, we would be just as active in trying to prevent legislation that negatively impacts our members specifically and Minnesota workers in general.

If I leave my current place of employment at the end of my contract, can I start the next day at a competing entity even if I have a non-compete in my contract?

Yes. Because SF 3505 voided existing non-compete clauses, the one in your contract would be void and unenforceable.

What is the best way for me to reach out to my union staff?

Send an email to Twin Cities Local Executive Director Bill Hendrickson at twincities@sagaftra.org.