Non-compete laws · MN
Minnesota physician non-compete law
As of October 21, 2026, Minnesota law voids most non-compete agreements, including physicians', with exceptions.
Banned for most workersChecked 2026-10-21
Covenants not to compete in agreements entered on or after July 1, 2023 are void and unenforceable for all employees and independent contractors, including physicians. Exceptions: sale of a business and anticipated dissolution. Nonsolicitation and nondisclosure agreements fall outside the ban. (Minn. Stat. § 181.988)
Limits in the law
- Employer may not require a Minnesota-based employee to agree to out-of-state venue or non-Minnesota law for claims under the section; such provisions are voidable by the employee
- Court may award reasonable attorney fees to an employee enforcing rights under the section
Who it covers
All employees, including independent contractors (and entities an individual is required to form to contract). No physician-specific provision; physicians and other clinicians are covered as employees/contractors.
Exceptions
- Covenant agreed upon during the sale of a business (reasonable area and time)
- Covenant agreed upon in anticipation of dissolution of a partnership, LLC or corporation
- Definition excludes nondisclosure/trade secret agreements
- Definition excludes nonsolicitation agreements and restrictions on using client/contact lists or soliciting customers
Effective date
The current rule took effect 2023-07-01.
Notes
Applies only to agreements entered on or after July 1, 2023; earlier agreements follow prior common law. No amendment since enactment.
Sources
- Minn. Stat. § 181.988 (statute)
- Laws 2023, ch. 53, art. 6, sec. 1 (effective date clause) (session-law)
Questions to ask about your contract
- Is the radius measured from your practice site or from every location the employer owns?
- Does the restriction apply if the employer terminates you without cause?
- Is there a buyout, and how is the amount calculated?
- What does your state's law say about physician non-competes?
Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Minnesota.