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IA SF380
IA SF380A bill for an act relating to prohibitions on noncompete covenants involving nurses and including applicability provisions.
summary
Introduced
02/19/2025
02/19/2025
In Committee
02/19/2025
02/19/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
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. 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 director of the department of inspections, appeals, and licensing 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.
AI Summary
This bill establishes comprehensive regulations for noncompete covenants specifically affecting registered nurses and advanced registered nurse practitioners in Iowa. The bill defines key terms such as "noncompete covenant" and "earnings," and provides that such covenants are void and unenforceable for nurses earning less than 150 percent of the minimum wage. For nurses earning above this threshold, noncompete covenants are only permissible if the employer can demonstrate a clear and inherent risk of unfair competition and can prove that the covenant is narrowly tailored to address that risk. The bill includes exceptions for business sales and partnership dissolutions. If an employer is found in violation, the nurse can recover attorney fees, court costs, lost wages, and potentially receive liquidated damages up to triple the lost wages. Additionally, employers can be fined $5,000 per violation, with these penalties deposited into the state's general fund. The bill applies only to noncompete covenants entered into on or after its effective date, providing clarity and protection for nurses in their employment agreements by limiting overly restrictive employment constraints.
Committee Categories
Labor and Employment
Sponsors (1)
Last Action
Subcommittee: Driscoll, Taylor, and Townsend. S.J. 342. (on 02/24/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF380 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF380.html |
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