In his recent State of the Union address on February 7, 2023, President Joe Biden mentioned non-compete agreements. The President voiced his support for a new rule proposed by the Federal Trade Commission (FTC). This new rule would invalidate millions of non-compete agreements, offering a significant shift in the way employees are restricted in the workplace.
Non-compete agreements have been viewed by the courts as inherently anti-capitalist, as they restrict employees in their ability to seek similar work in their field. These agreements usually bind employees if they are laid off, fired, or quit their job, making it impossible for them to provide for themselves and their families. In some cases, non-compete agreements can burden individuals and even make it impossible for them to find similar work in their field.
Many employers use non-compete agreements to intimidate employees. A non-compete agreement can be wielded as a threat if an employee is seeking a better workplace, making it difficult for them to advance in their careers. This type of restriction can stifle innovation and limit the mobility of the workforce, ultimately hampering the economy as a whole.
Under Minnesota law, to determine if a non-compete agreement is reasonable, Courts consider several factors, including: (1) whether the restraint is necessary for the protection of the business or goodwill of the employer; (2) whether the restraint is greater than necessary to adequately protect the employer’s legitimate interests; (3) the duration of the restriction; and (4) the geographic scope of the restriction.
President Biden’s support for the FTC’s proposed new rule is a step in the right direction towards a fairer and more equitable workplace. Employees deserve greater freedom to seek new opportunities, advance in their careers, and contribute to the economy. This change will help to create a more dynamic and innovative workforce, ultimately benefiting everyone.
In light of these recent developments, it is important for individuals to understand their rights and obligations under non-compete agreements. If you have a question about a non-compete, it is important to seek legal counsel. At Heimerl & Lammers, our experienced attorneys can review your non-compete, assess its validity, and help you plan a path forward.
With a thorough understanding of the law and a commitment to protecting your rights, our team will work with you to achieve the best possible outcome. Don’t let a non-compete agreement limit your career advancement or restrict your ability to provide for your family. Contact Heimerl & Lammers today for a consultation at (612) 294-2200.
