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Can a home care agency make caregivers sign a non-compete in Minnesota?
Last verified October 17, 2026 · All Minnesota resources
Banned. Minnesota voids non-competes in employment agreements signed on or after 2023-07-01, with exceptions only for the sale or dissolution of a business. Customer non-solicitation and confidentiality agreements are still allowed. A 2024 law also bars a service provider from restricting its customers from soliciting or hiring the provider's employees, so client no-hire clauses in home care service agreements are void.
| Status | Banned |
|---|---|
| Client non-solicitation | Customer non-solicitation agreements and agreements restricting use of client lists are expressly excluded from the ban and remain subject to general reasonableness rules. |
| Notice requirements | If an existing customer contract contains a no-hire or no-solicit restriction barred by § 181.9881, the service provider must notify its employees of the law and of the void restriction. |
| Statute | Minn. Stat. §§ 181.988, 181.9881 |
| Latest change | 2023-07-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
Confirm the effective date of the 2024 client no-hire ban (2024 c. 110) with counsel; the statute text does not show it.
General information, not legal advice.
Sources
More for Minnesota
Non-compete rules by state: other states
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