Employment Litigation Attorney in Minneapolis, Minnesota

Can an employer require current employees to sign a non-compete agreement?

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Can an employer require current employees to sign a non-compete? The simple answer is yes, but it’s always more complex than that. The best way to have a non-compete enforceable in Minnesota and most other jurisdictions is to have the employee sign a non-compete before they start work. In Minnesota and many other states you’re required to have independent consideration and starting employment is consider independent consideration.

Once an employee starts work, the employer has to provide independent consideration. It could be in the form of a bonus. It could be in the form of a promotion. It would be in the form of an opportunity to earn some shares in the company or to earn a bonus, that kind of thing. So yes, you can have an employee sign a non-compete after employment, but you have to jump through some additional hoops to make it enforceable.

Minneapolis employment law attorney Greg Stenmoe discusses when employers can require a current employee to sign a non-compete agreement.

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