Bills › 89th General Assembly
Relating to prohibitions on noncompete covenants and including applicability provisions
Where it is now
- Done: IntroducedFebruary 16, 2022
- Done: SubcommitteeFebruary 23, 2022
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary New rules would stop employers from using certain noncompete agreements that prevent workers from taking new jobs. These rules protect employees who earn less than 150 percent of the state minimum wage, and they also limit restrictions on higher-paid workers unless the employer can prove a specific need. If an employer breaks these rules, they may have to pay fines or compensate the worker for lost wages and legal fees.1
Read the official explanation
This bill relates to noncompete covenants contained within employment contracts and provisions that are prohibited and void. The bill provides definitions for “covenant not to solicit”, “earnings”, and “noncompete covenant”. The bill provides that if a person makes less than 150 percent of the minimum wage, a noncompete covenant is unenforceable and violates the bill. The bill provides that a noncompete covenant with a non-low-wage employee is unenforceable and violates the bill unless the employer can show that the noncompete covenant is necessary due to a clear and inherent risk of unfair competition and the noncompete covenant was narrowly tailored to mitigate the risk. A prevailing employee is entitled to recover reasonable attorney fees, court costs, lost wages, and at the discretion of the court, liquidated damages of up to triple the amount of lost wages for willful violations of the bill. An employer found to be in violation of the bill is subject to a $5,000 penalty per violation payable to the division of labor for deposit in the general fund. The bill applies to covenants not to compete entered into on or after the effective date of the bill.
Senate subcommittee
Named February 23, 2022. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Lobbying
1 for · 0 against · 7 undecided · Who →
Family tree
89th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title.
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Matched by wording or an identical title.