Prohibiting employers from entering into noncompete agreements with low-wage employees

Sponsored by the Senate Labor and Business Relations Committee

Topics:Business & economy Jobs & workers

Same legislation: SSB 1147

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Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 2, 2021
Done: SubcommitteeFebruary 3, 2021
Done: Senate committeeFebruary 25, 2021
Done: Passes the SenateMarch 29, 202145–0
Done: House committeeJanuary 26, 2022
Stopped: Passes the HouseDied when the General Assembly ended
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 Employers would no longer be allowed to make workers who earn $14.50 an hour or less sign agreements that stop them from working for a different company. Any such agreements signed after this law starts would be considered invalid. This rule protects low-wage employees from being restricted in where or for whom they can work after leaving their current job.¹

Read the official explanation

This bill prohibits an employer from requiring a low-wage employee to enter into a noncompete agreement. The bill provides that such agreements entered into between an employer and a low-wage employee on or after the effective date of the bill shall be void and unenforceable.50. The bill defines “noncompete agreement”, with specified exclusions, as an agreement between an employer and a low-wage employee that restricts the low-wage employee from performing work for a different employer for a specified period of time, work in a specified geographical area, or work for a different employer that is similar to the low-wage employee’s work for the employer who is a party to the agreement.

Changed since by amendment S-3105; see Amendments.

Full bill text²

House subcommittee

Named January 11, 2022. On January 18, 2022 it recommended passage.

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Iowa Code it changes

Creates§94.1 §94.2

How the Code works³

Lobbying

8 for · 1 against · 14 undecided · Who →

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Tried before

SF 2332Cleared committee88th GA

Study bill

SSB 1147Renumbered

89th General Assembly

SF 496Passed a chamberfrom SSB 1147

Earlier and later bills are matched by wording or an identical title.

Tried before

This idea has been filed in an earlier General Assembly. None got through a chamber.

SF 2332 Prohibiting employers from entering into noncompete agreements with low-wage employees
88th General Assembly · Approved by committee · very similar
Cleared committee

Matched by wording or an identical title.