Dan Prokott Comments on Minnesota Noncompete Ban for Legal Dive

In the article, “Minnesota’s noncompete ban marked big win for Tim Walz,” labor and employment partner Dan Prokott discussed how Minnesota’s noncompete ban impacts employment agreements and the way companies ensure trade secrets are protected with Legal Dive. 

Prokott said he believes Minnesota state legislators took feedback from companies and business groups when crafting the noncompete ban, including by incorporating clarifying language ensuring nonsolicitation, nondisclosure and confidentiality provisions remain enforceable under Minnesota law.

Prokott also said that the law has no retroactive effect for companies with already established noncompetes. He noted that because the law applied only going forward, the advice he gives to companies differs based on when an employment agreement was signed — August 2022 versus August 2023. “The law has no retroactive effect, which is a positive because it didn’t unwind existing agreements,” he said. 

Lastly, regarding the FTC’s noncompete ban and whether it takes effect, Prokott said, “The trend has definitely been for states to place limitations on noncompete agreements. And that’s not going away.”