Key Takeaways Under Minnesota State Law: Businesses should not use non-compete agreements for their employees and should not be including non-compete language in their employee handbook or onboarding processes anymore. Existing non-compete agreements entered before July 1, 2023, are still valid, so long as they are reasonable. Good Practice: Conduct due diligence on current agreements to verify that sufficient protections exist. Assess employees’ access to trade secrets to ensure business interests are being properly protected. Review venue provisions in form employment contracts. Review and strengthen less restrictive alternatives (e.g., NDAs, non-solicitation agreements, trade secret law, forfeiture provisions, etc.). Consult with an experienced attorney to determine the best courses of action for your specific situation. This is Part One of a Four-Part series on recent developments in non-compete law. This article details the nuts and bolts of the Minnesota statutory prohibition on non-competes, effective July 1, 2023. The next article will outline the Rule promulgated by the Federal Trade Commission (FTC). The third article in the series will summarize litigation attacking the FTC Rule. The fourth and final article in the series will address practical guidance going forward, including the impact of the United States Supreme Court reversing the Chevron doctrine on the FTC Rule – in whatever form it may be considering the…
Read MoreFlexible and remote working was tested on a massive scale at the onset of COVID-19 sheltering restrictions approximately 15 months ago. It appears to have been largely successful and may have a permanent impact on how and where we work. Read our blog as we discuss the impact of remote workers on foreign business registration. The positive impact of working remotely Many media outlets have suggested that the ability to work remotely is a very important amenity to the majority of Millennial and Generation Z members. Other proponents cite the desire to live in a more affordable location, or to save on commute times and transportation related costs, or even to reduce their carbon footprint. Employers may find that allowing workers to work remotely improves retention and provides a greater pool of qualified employees to fill job openings. Parameters for multi-state employment If you employ people who reside in another state, you may need to register to do business in that state as well. Each state has its own parameters indicating what “doing business” in a state means, so make sure you know the rules. One interesting website, with which we have no affiliation, is https://www.makemymove.com. This site lists cities that offer cash incentives to workers who relocate. Some cities require that to…
Read MoreBarna, Guzy & Steffen, Ltd. is pleased to announce that Governor Walz has appointed shareholder Scott Lepak to serve on the Public Employment Relations Board (PERB). Scott will serve as the alternate public employer’s representative. The Board is the body charged with addressing unfair labor practice charges under the public sector labor relations law. This Board was originally active from 1971 to 1991 and was recreated in 2014. Scott is a shareholder in our labor and employment section. He has been working in this area for well over 30 years. Scott noted that he appeared before this Board as an advocate during its original mission. He is delighted to now serve in this new capacity. He also pointed out, in response to numerous questions from public employer clients, that he will continue to represent public sector employer and municipal clients. “This is very much a less than part time gig,” Scott said. “We needed another representative to get cases processed when the regular public sector board member had a conflict or was unavailable. I am excited to join the well-regarded members of this Board when needed as an alternate.” Congratulations, Scott, on your appointment to the Minnesota Public Employment Relations Board. Scott M. Lepak has represented employers on labor and employment matters in…
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