Bills would curb restrictions on employees who quit

Once again, Minnesota lawmakers are proposing a ban on noncompete provisions. The Minnesota Legislature is considering two bills, HF295 and SF405. If enacted, the bills would make noncompete provisions unenforceable unless they meet certain criteria.

Noncompete are agreements that ensure employees will not enrich a competing business either during or after the business relationship. They can place many limits on current and former employees, from when or even where they can work. Noncompetes can be provisions in an employment contract or a standalone agreement. And they are not uncommon. In 2019, the Economic Policy Institute reported that 32% of the private sector businesses reported that employees signed a noncompete agreement.

Due to their expansion and application, noncompetes have gotten a bad reputation as of late. David Larson, professor of law at Mitchell Hamline School of Law, is an expert in labor and employment law. He discussed some of the drawbacks of noncompetes.

“One problem with covenants not to compete is that they often are not obvious,” Larson states. “They may be in fine print located near the end of a contract. They also may not be implemented until after the worker has already accepted a job.”

The push to ban noncompete provisions has received a lot of national attention. The media has focused on noncompetes in employment contracts for low-wage workers. For instance, the sandwich company Jimmy Johns...

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