Politics

Bill to ban non-compete clause loophole gets Minnesota House hearing

February 15, 2024 / 11:23 AM CST / CBS Minnesota

Bill aims to ban restrictive employment covenants in Minnesota

ST. PAUL, Minn. — The first legislative hearing for a bill that prohibits a hidden loophole that oppresses workers will be held Thursday afternoon at the Minnesota Capitol.

Bill author Rep. Emma Greenman, DFL-Minneapolis, will hold a press conference early Thursday afternoon ahead of the hearing on restrictive employment covenants.

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Greenman aims to stop agreements in service contracts, which she calls "shadow non-competes," since non-competes are now illegal in Minnesota as of last legislative session due to a bill she co-authored with Sen. Alice Mann, DFL, Edina.

"The employment restrictions depress worker's wages and limit their career growth by creating barriers for people trying to build experience within a given industry," Greeman said.

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Greeman says these restrictions in service contracts often exist without the knowledge of employees.

Workers who will also be speaking Thursday came forward this summer to expose the restrictions, which they say limit their job opportunities. They will testify on why they believe the bill is so critical.

Stephen Swanson

Stephen Swanson is a web producer at CBS Minnesota. A 21-year station veteran, Stephen was a floor director for a decade before moving to the newsroom, where he focuses on general assignment reporting.