Much is written that noncomete law varies greatly from state to state. What’s enforceable in Florida is banned in California and so on and so on.
It’s not just noncompete law that varies. Each state has its own “quirks” when it comes to employment law. Prior to the “remote work boom” this previously only mattered to large-scale companies with physical presences in various states. Now, however, even small to mid-size businesses have workers in various states, even if the business only serves a limited geographic area.
Alas, now all companies must remain aware of state-by-state employment differences. Below are two examples.
1️⃣ Montana Says No to Employment At Will
A lot of employers think employment at will is universal. It’s close, but one state, Montana does not have employment at will.
The blue-sky state has something called the Wrongful Discharge in Employment Act. It says that any employee who has completed their probationary period of employment cannot be terminated without good cause. 🤯 Even California doesn’t have such a law. “Good cause” is defined as unsatisfactory performance, disruption of the employer’s operation, the repeated violation of the employer’s written policies, or a legitimate business reason (think layoffs due to financial impact to the business).
“But Michael, we’re talking about Montana, there are like four people there.”
Not so fast. Montana’s population is growing. Montana was a popular spot during the pandemic. It’s entirely possible that a business not operating in Montana has a remote worker there.
2️⃣ Minnesota Has a Unique Severance Agreement Recission Law
Minnesota-nice is at a new level when it comes to the state’s new recission law.
Other than a universal seven-day revocation period under the federal Older Workers Benefit Protection Act to obtain a release of age claims for an employee over 40, employees typically can’t revoke their agreement to waive claims.
Enter Minnesota.
Minnesota law says that employees who waive potential Minnesota Human Rights Act (MHRA) claims have 15 days to rescind their agreement. Any Minnesota employee who is offered a separation agreement to waive potential MHRA claims must be given 15 days to rescind their signature. The separation agreement must inform the employee of their right to rescind the MHRA waiver within 15 days.
Of course, there are a lot of other state-by-state quirks out there. If you’re an employer with workers in multiple states, make sure you know the differences.