SF 426 – Iowa

Status: In Process
Year Introduced: 2024
Link: https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=SF426

This bill aims to regulate noncompete covenants (agreements restricting an employee from working for competitors or starting a similar business post-employment) involving nurses. Noncompete covenants for nurses making less than 150% of the minimum wage are deemed unenforceable and in violation of the bill. For nurses exceeding this wage threshold, a noncompete covenant can only be enforced if the employer proves it’s necessary to prevent unfair competition and that it was narrowly tailored. The bill includes exceptions and penalties for violations. The bill only applies to noncompete covenants entered into after the bill is in effect.

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