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Bills › 90th General Assembly

SF 304Died when the session ended · February 15, 2023

Relating to prohibitions on noncompete covenants and including applicability provisions

Topics:Jobs & workers

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Official bill pageLobbyist declarationsOne-pager to print

Where it is now

  1. Done: IntroducedFebruary 15, 2023
  2. Done: SubcommitteeFebruary 21, 2023
  3. Stopped: Senate committeeDied when the General Assembly ended
  4. Next: Passes the Senate
  5. Next: House committee
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2024 session adjourned on April 19, 2024, 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 anyone earning less than 150 percent of the 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, as defined in the bill, contained within employment contracts and provisions that are prohibited and void. 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. The bill includes exceptions to these provisions. 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 labor commissioner 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.

Full bill text2

Senate subcommittee

Named February 21, 2023. 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

Creates§95.1§95.2§95.3§95.4§95.5

Amends§84A.5§91.4

How the Code works3

Lobbying

1 for · 0 against · 7 undecided · Who →

Family tree

Tried before

SF 2302Cleared committee89th GA

90th General Assembly

SF 304Cleared committee

Picked up later

SF 380Cleared committee91st GA

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 2302 Relating to prohibitions on noncompete covenants and including applicability provisions
    89th General Assembly · In committee · very similar
    Cleared committee

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Matched by wording or an identical title.