HF 2072 (LSB 5255YH (5) 91)

HOUSE FILE 2072

BY  COLLINS

A BILL FOR

An Act relating to the prohibition of noncompete clauses in certain employment contracts entered into by the university of Iowa hospitals and clinics, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 262.9, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  43.  a.  Develop a policy that prohibits the university of Iowa hospitals and clinics from including a noncompete clause in an employment contract with a physician.
   b.  For purposes of this subsection:
   (1)  “Noncompete clause” means any restriction on the right of a physician to practice in any geographic area or for a defined period of time upon the termination of an employment contract between the physician and the university of Iowa hospitals and clinics.
   (2)  “Physician” means an individual licensed under chapter 148.
   c.  This subsection applies to all employment contracts between a physician and the university of Iowa hospitals and clinics entered into, extended, or renewed on or after the effective date of this Act.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to noncompete clauses in certain employment contracts entered into by the university of Iowa hospitals and clinics (UIHC).
   The bill directs the board of regents (board) to develop a policy prohibiting UIHC from including a noncompete clause in any contract with a physician. The bill provides that the prohibition applies to contracts entered into, extended, or renewed on or after the effective date of the bill.
   The bill defines “noncompete clause” and “physician”.
   The bill takes effect upon enactment.