Minnesota Ban on Staffing Agency Nonsolicitation Provisions to Take Effect July 1, 2024
A new Minnesota law taking effect on July 1, 2024, will ban the use of non-solicitation agreements by staffing agencies and other service providers to prevent their customers, or the companies that contract for the staffing agency’s services, from soliciting or hiring the staffing agency’s employees who provide the contracted temporary services.
Quick Hits
- Minnesota’s new ban on the use of non-solicitation agreements by service providers or staffing agencies takes effect on July 1, 2024.
- The law will prohibit service providers from restricting in any way its employees from being solicited or hired by user companies.
- The law will render such provisions void and enforceable.
- The new law, which was contained in Minnesota’s Labor and Industry Policy Omnibus bill signed by Governor Tim Walz on May 17, 2024, will prohibit any contractual provisions that restrict or restrain service providers’ user companies from directly or indirectly soliciting or hiring the service providers’ employees.
Source(s): Olgetree Deakins, received on July 1, 2024.