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