This bill aims to prohibit restrictive employment covenants in service contracts within Minnesota, specifically by introducing new legal language in Minnesota Statutes, chapter 181. It defines key terms such as "Customer," "Employee," and "Service provider," establishing a framework for understanding the relationships involved in service contracts. The bill explicitly states that no service provider can restrict a customer from soliciting or hiring their employees, making any existing contract provisions that violate this rule void and unenforceable. Additionally, service providers are required to notify their employees about any restrictive covenants in existing contracts that conflict with this new law.

The effective date for this legislation is set for July 1, 2024, meaning it will apply to contracts and agreements entered into on or after that date. This bill seeks to enhance employee mobility and protect workers' rights by ensuring that service providers cannot impose limitations that would prevent customers from hiring their employees.