This bill addresses the legality of noncompete covenants in employment contracts specifically for nurses and advanced registered nurse practitioners in Iowa. It establishes that any noncompete covenant is void if the employee's earnings are less than 150% of the state or federal minimum wage. For employees earning above this threshold, a noncompete covenant is only enforceable if the employer can demonstrate a clear risk of unfair competition and that the covenant is narrowly tailored in terms of geographic area and duration. The bill also introduces definitions for terms such as "covenant not to solicit," "noncompete covenant," and "earnings," and outlines exceptions for certain agreements related to the sale of business goodwill and partnership dissolutions.

Additionally, the bill provides remedies for employees who prevail in civil actions against employers who violate these provisions. Employees can recover reasonable attorney fees, court costs, lost wages, and potentially liquidated damages up to three times the amount of lost wages for willful violations. Employers found in violation may face a civil penalty of $5,000 per violation, which will be paid to the director of the department of inspections, appeals, and licensing. The bill applies to noncompete covenants entered into on or after its effective date.

Statutes affected:
Introduced: 10A.202, 10A.204