SF 426: Relating to prohibitions on noncompete covenants involving nurses and including applicability provisions

What it does

This bill relates to noncompete covenants, as defined in the bill, contained within employment contracts involving nurses and provisions that are prohibited and void. The bill provides that if a person employed as a registered nurse or an advanced registered nurse practitioner 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 an employee who exceeds that wage threshold 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.

Senate subcommittee · named March 2, 2023

• Sen. Tim Kraayenbrink (R) · tim.kraayenbrink@legis.iowa.gov
• Sen. Molly Donahue (D) · molly.donahue@legis.iowa.gov
• Sen. Dennis Guth (R) · dennis.guth@legis.iowa.gov

In plain words

1. February 27, 2023Filed in the Senate and sent to the Workforce committee
2. March 2, 2023Senate subcommittee named: Kraayenbrink, Donahue and Guth