Wausau, Wis.-based Aspirus Health is under investigation by the Minnesota Attorney General’s Office following physician complaints about amended employment contracts. The investigation centers on whether the health system violated the state’s 2023 ban on noncompete agreements, the Minnesota Reformer reported Oct. 17.
The Minnesota attorney general’s antitrust division has opened an investigation and subpoenaed Aspirus. “After receiving complaints from employees, the Minnesota Attorney General’s Office has opened an investigation into the use of noncompete agreements at Aspirus St. Luke’s,” spokesperson Brian Evans said in a statement shared with Becker’s.
Five things to know:
1. Aspirus merged with St. Luke’s in 2024. The merger formed a 19-hospital system with more than 1,300 employed physicians and advanced practice providers across Wisconsin, Michigan and Minnesota.
2. Physicians allege pressure to sign revised contracts. Physicians in Duluth, Minn., argue they were pressured to sign amended contracts that changed pay, work hours and scheduling expectations, and retained a noncompete clause, according to the Reformer. Those who declined were allegedly told their refusal would be treated as a resignation.
3. The noncompete language may violate Minnesota law. Minnesota banned noncompete clauses in new employment agreements in 2023. While Aspirus’ amended contracts allegedly carried forward clauses from prior agreements, employment attorneys argue that annual renewals could qualify as new contracts under the law, according to the report.
4. The case highlights national tensions over noncompetes. In 2024, the Federal Trade Commission issued a rule to ban most noncompete agreements nationwide. However, the rule was struck down in court, and the FTC dropped its appeals in 2025. The American Hospital Association and Federation of American Hospitals opposed the rule, citing concerns over workforce retention.
5. Minnesota’s law remains in effect. While the FTC rule is no longer moving forward, Minnesota’s state-level ban on noncompetes is active. Legal experts argue enforcement may depend on how courts interpret contract renewals and whether they constitute “new agreements,” according to the Reformer.
“Aspirus Health is a values-driven organization with a mission to heal people, promote health and strengthen communities,” a spokesperson for the health system said in a statement shared with Becker’s. “We look forward to working closely with the attorney general’s office to clarify any misunderstanding.”
