MMA Opposes Bill Reestablishing Non-compete Clauses in Minnesota

March 13, 2025

Legislation that would reinstate non-compete clauses has returned to St. Paul.  

In 2023, the MMA helped pass legislation to void non-compete clauses in Minnesota after July of that year. Prior to the 2023 law, many physicians were presented with a non-negotiable, non-compete provision within a prospective employment agreement, especially when new to practice.  

The MMA argued that these non-competes limit physician’s options to practice if they ever look for new employment. In addition to preventing physicians from practicing within a certain geographic area for a specified time, these provisions can also prevent them from informing their existing patients that they are leaving and providing them with their new location. A physician may be forced to leave the community and the patients they serve simply because they have a non-compete provision in their employment contract.   

On March 11, the House Workforce, Labor, and Economic Development Finance and Policy Committee heard HF1768 (Niska, R – Ramsey) to reinstate non-compete clauses for those who make over $500,000. The MMA opposes this bill. 

Shannon Neale, MD, testifies in opposition to non-compete clauses.

“Non-compete clauses in healthcare are harmful to both physicians and the communities we serve,” said Shannon Neale, MD, at the committee hearing. “These restrictive covenants do not enhance patient care and do not increase access. Rather, they limit physician mobility, restrict patient choice, and exacerbate physician shortages, particularly in underserved and rural areas.” 

The legislation was referred to the general register for a possible future floor vote, though it will likely not have enough votes to pass. This bill has not been introduced in the Senate.