Workers and lawmakers celebrate new Minnesota law preventing non-compete contracts

Several new laws taking effect in Minnesota as July begins. Among them is one that prevents companies from including non-compete contracts with workers, some of which are drawn up without employees knowing about it.

Union workers, lawmakers and downtown residents gathered at the entrance to the Third Avenue Bridge across the street from the 39-story Carlisle Condo Building on Tuesday.

Michael Rupke is a condo desk attendant and says it's worth celebrating the elimination of shadow non-competes.

"This is living proof that when the working class bands together, we can accomplish great, amazing things that lift each other and improve the quality of life," Rupke explained.

Non-competes prevent workers from doing similar work for another employer or block workers from taking new jobs in a certain time period.

Rupke and others called on companies not to enforce non-competes already in place. They feel that would be the best case scenario for workers and residents.

The provision in the 2024 labor and industry policy law that takes effect July 1, 2024, will prohibit the use of:

- Restrictive employment covenants, and such covenants will be void and unenforceable.

- Service providers — defined as “any partnership, association, corporation, business, trust, or group of persons.

- Acting directly or indirectly as an employer or manager for work contracted or requested by a customer” — must give notice to employees about this law if their contracts contain this type of restrictive provision.

- Per the law, “This section does not apply to workers providing professional business consulting for computer.

- Software development and related services who are seeking employment through a service provider with the knowledge.

- Intention of being considered for a permanent position of employment with the customer as their employer at a later date.”