Committee advances bill to restore limited noncompete agreements for some R&D and highly paid employees

The Minnesota House Workforce, Labor and Economic Development Finance and Policy Committee voted 7‑6 to re‑refer House File 1768 to the general register after two hours of testimony and debate on a proposal to narrow the state’s 2023 ban on noncompete agreements.

Proponents, led by the bill’s author Representative Nieska, said the bill restores a narrowly tailored ability for employers and some employees to negotiate noncompete provisions for positions that involve research and development or the creation, analysis or modification of confidential, proprietary or trade‑secret information. “Companies that want to do research and development and innovation in Minnesota need to have the tools to protect their trade secrets,” Representative Nieska told the committee during her presentation (transcript). The measure would allow such agreements for employees whose annual budgeted compensation meets an income threshold specified in the bill; it also creates a separate carve‑out for employees with compensation above $500,000.

The bill drew sharply divided testimony. Business groups — including Lauren Shothorst for the Minnesota Chamber of Commerce…