Senate
File
2332
-
Introduced
SENATE
FILE
2332
BY
COMMITTEE
ON
LABOR
AND
BUSINESS
RELATIONS
(SUCCESSOR
TO
SSB
3023)
A
BILL
FOR
An
Act
prohibiting
employers
from
entering
into
noncompete
1
agreements
with
low-wage
employees.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
94.1
Definitions.
1
As
used
in
this
section,
unless
the
context
otherwise
2
requires:
3
1.
“Employee”
means
a
natural
person
who
is
employed
in
this
4
state
for
wages
by
an
employer.
5
2.
“Employer”
means
a
person,
as
defined
in
chapter
4,
who
6
in
this
state
employs
for
wages
an
employee.
7
3.
“Low-wage
employee”
means
an
employee
who
earns
an
hourly
8
wage
that
is
less
than
or
equal
to
two
hundred
percent
of
the
9
federal
minimum
wage.
10
4.
“Noncompete
agreement”
means
an
agreement
between
an
11
employer
and
a
low-wage
employee
that
restricts
the
low-wage
12
employee
from
performing
any
of
the
following:
13
a.
Work
for
a
different
employer
for
a
specified
period
of
14
time.
15
b.
Work
in
a
specified
geographical
area.
16
c.
Work
for
a
different
employer
that
is
similar
to
the
17
low-wage
employee’s
work
for
the
employer
who
is
a
party
to
the
18
agreement.
19
Sec.
2.
NEW
SECTION
.
94.2
Noncompete
agreements
with
20
low-wage
employees
prohibited.
21
1.
An
employer
shall
not
require
a
low-wage
employee
to
22
enter
into
a
noncompete
agreement.
23
2.
A
noncompete
agreement
entered
into
between
an
employer
24
and
a
low-wage
employee
on
or
after
the
effective
date
of
this
25
Act
shall
be
void
and
unenforceable.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
prohibits
an
employer
from
requiring
a
low-wage
30
employee
to
enter
into
a
noncompete
agreement.
The
bill
31
provides
that
such
agreements
entered
into
between
an
employer
32
and
a
low-wage
employee
on
or
after
the
effective
date
of
the
33
bill
shall
be
void
and
unenforceable.
34
The
bill
defines
a
“low-wage
employee”
as
an
employee
who
35
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2
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2332
earns
an
hourly
wage
that
is
less
than
or
equal
to
200
percent
1
of
the
federal
minimum
wage.
The
bill
defines
“noncompete
2
agreement”
as
an
agreement
between
an
employer
and
a
low-wage
3
employee
that
restricts
the
low-wage
employee
from
performing
4
work
for
a
different
employer
for
a
specified
period
of
time,
5
work
in
a
specified
geographical
area,
or
work
for
a
different
6
employer
that
is
similar
to
the
low-wage
employee’s
work
for
7
the
employer
who
is
a
party
to
the
agreement.
8
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