Important Information to Know About the Employment Agreement in Minnesota
As an employer, you should be wary that new employees can share your trade secrets and other vital information that can give your competitors an edge over you. Others can learn your secrets and start new competing businesses.
However, with a well-created employment agreement in Minnesota, you can protect your trade secrets and essential information from employee abuse.
The agreements help establish a professional employment relationship and will minimize the chances of disagreements with your new hire. Keep reading to learn more about Minnesota employment contracts.
Information Included in a Minnesota Employment Agreement
No matter your industry, creating employment documents when hiring new employees is essential. For instance, if you own a health facility, you need a physician employment agreement when hiring new physicians or doctors.
So, you need to know the information to add to the contract to ensure it is legally binding and doesn't violate public policy.
A typical agreement in Minnesota should have the following information;
- Details of the employer and employee
- Job title and description
- Contract duration
- Company Policies
- Non-compete and non-disclosure clauses
- Time off and vacation time
- Contract termination clause
Please note that details of an employment document vary with the job, employer, and type of employee to be recruited. And that means some contracts will have more information and clauses than others.
Are Employment Agreements Enforceable in Minnesota?
Well-created employment documents and agreements that adhere to Chapter 338 of the Minnesota Statutes are enforceable. The contracts should not violate public policy or break any contract law.
It is important to note that Minnesota is an at-will employment state where an employer or employee can terminate the employment relationship at any time for almost any reason. However, there are restrictions preventing an employer from firing employees. These cases include discriminatory reasons like sexual orientation, age, race, disability, religion, or marital status.
A valid employment contract can protect employees from unwarranted contract termination.
The Legal Requirements for Employment Contracts
Minnesota is moderate when it comes to legal requirements surrounding employment contracts. The state recognizes both written and oral agreements. Although verbal contracts are enforceable, they are challenging to verify and prove. So, it is wise to use written agreements as they have clear terms and are signed by both parties, making it easy to verify and prove.
Minnesota also recognizes certain statements in an employee handbook as implied employment contracts if the statements have clear and definite terms that are communicated to the employer who accepts them and works for the employer.
A written, verbal, or implied employment agreement in Minnesota is legally binding if it adheres to state laws. The contract should also be fair to both parties to create a perfect employment relationship. If one party is aggrieved, they can seek legal action to ensure the terms of the agreement are enforced.
Types of Employment Contracts in Minnesota
There are many types of employment contracts, and here are the common ones;
- Permanent employment is used to hire permanent employees. So, if you want to hire a physician permanently, you will need a physician employment contract outlining the duties, salary, and reasons for termination.
- A non-disclosure contract restricts employees from sharing trade secrets and confidential information about their former or current employers.
- A non-compete contract prohibits the employee from competing with a former employer by establishing a competing business or working for a competitor.
- A fixed-term contract is used to hire temporary employees on a short or long-term contract.
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