The proposed bill aims to prohibit restrictive employment covenants in service contracts within Minnesota. It introduces new legal language under Minnesota Statutes, chapter 181, specifically stating that no service provider can restrict a customer from soliciting or hiring their employees. The bill defines key terms such as "customer," "employee," and "service provider," ensuring clarity in its application. Additionally, any existing contract provisions that violate this prohibition will be deemed void and unenforceable, and service providers are required to notify their employees of this law when such provisions exist.

The bill is set to take effect on August 1, 2024, and will apply to contracts and agreements entered into on or after that date. This legislative change is intended to enhance employee mobility and protect the rights of workers in the service industry by eliminating restrictive practices that could hinder their employment opportunities.