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One to Keep An Eye On: HF 3673 (Minnesota)


As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


The Minnesota Legislature is debating HF 3673, which if passed, would ban the use of non-compete agreements with all employees in the state.

As currently written, the legislation would bar all employers in the state from enforcing (or entering into) non-compete agreements with any employee.  Perhaps sensing what some wily in house attorney might try to include to avoid this potential law, HF 3673 prohibits a non-Minnesota choice of law provision from being added.  For any non-compete currently in place, this legislation would not impact those.

Notably, there is a carveout.  The legislation would allow some non-competes to be used (up to one year), if the employer compensated the employee at the employee's final rate of pay.

It is still rather early in the process of HF 3673 moving through the Legislature but is one that readers should keep a close eye on going forward.


For a copy of HF 3673:  https://www.revisor.mn.gov/bills/text.php?number=HF3673&version=latest&session=91&session_number=0&session_year=2019

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