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Senate Study Bill 1106 - IntroducedA Bill ForAn Act 1prohibiting employers from requiring certain mental
2health professionals to enter into noncompete agreements and
3including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 147.164 Mental health professionals
2— noncompete agreements prohibited.
31. As used in this section, unless the context otherwise
4requires:
5a. “Confidentiality agreement” means an agreement between an
6employer and an employee by which the employee agrees not to
7disclose specified information designated by the employer as
8confidential.
9b. “Mental health professional” means the same as defined in
10section 228.1, and includes all of the following:
11(1) Individuals who are completing their supervisory
12requirement under a temporary license.
13(2) Licensed master social workers with a current and active
14supervision plan on file with the board of social work.
15c. (1) “Noncompete agreement” means an agreement between
16an employer and an employee that restricts the employee from
17performing any of the following:
18(a) Work for a different employer for a specified period of
19time.
20(b) Work in a specified geographical area.
21(c) Work for a different employer that is similar to
22the employee’s work for the employer who is a party to the
23agreement.
24(2) “Noncompete agreement” does not include any of the
25following:
26(a) A nonsolicitation agreement.
27(b) A confidentiality agreement.
28(c) An agreement prohibiting use or disclosure of trade
29secrets or inventions.
30d. “Nonsolicitation agreement” means an agreement between
31an employer and an employee that prohibits solicitation by
32the employee, upon termination of employment, of any of the
33following:
34(1) An employee of the employer to leave employment by the
35employer.
-1- 1(2) A customer of the employer to cease or reduce the extent
2to which the customer does business with the employer.
32. An employer shall not require a mental health provider to
4enter into a noncompete agreement.
53. A mental health professional subject to a noncompete
6agreement who seeks a civil remedy to invalidate the agreement
7shall be awarded court costs and attorney fees to be paid by
8the employer enforcing the agreement.
94. A noncompete agreement entered into, or the renewal of
10an existing agreement between, an employer and a mental health
11professional on or after the effective date of this Act shall
12be void and unenforceable.
13 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
14importance, takes effect upon enactment.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill prohibits an employer from requiring a mental
19health professional to enter into a noncompete agreement. The
20bill defines “mental health professional” and “noncompete
21agreement”.
22The bill provides that a mental health professional
23subject to a noncompete agreement who seeks a civil remedy
24to invalidate the agreement shall be awarded court costs
25and attorney fees to be paid by the employer enforcing the
26agreement.
27A noncompete agreement entered into, or the renewal of an
28existing agreement between, an employer and a mental health
29professional on or after the effective date of the bill shall
30be void and unenforceable.
31The bill takes effect upon enactment.
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2health professionals to enter into noncompete agreements and
3including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 147.164 Mental health professionals
2— noncompete agreements prohibited.
31. As used in this section, unless the context otherwise
4requires:
5a. “Confidentiality agreement” means an agreement between an
6employer and an employee by which the employee agrees not to
7disclose specified information designated by the employer as
8confidential.
9b. “Mental health professional” means the same as defined in
10section 228.1, and includes all of the following:
11(1) Individuals who are completing their supervisory
12requirement under a temporary license.
13(2) Licensed master social workers with a current and active
14supervision plan on file with the board of social work.
15c. (1) “Noncompete agreement” means an agreement between
16an employer and an employee that restricts the employee from
17performing any of the following:
18(a) Work for a different employer for a specified period of
19time.
20(b) Work in a specified geographical area.
21(c) Work for a different employer that is similar to
22the employee’s work for the employer who is a party to the
23agreement.
24(2) “Noncompete agreement” does not include any of the
25following:
26(a) A nonsolicitation agreement.
27(b) A confidentiality agreement.
28(c) An agreement prohibiting use or disclosure of trade
29secrets or inventions.
30d. “Nonsolicitation agreement” means an agreement between
31an employer and an employee that prohibits solicitation by
32the employee, upon termination of employment, of any of the
33following:
34(1) An employee of the employer to leave employment by the
35employer.
-1- 1(2) A customer of the employer to cease or reduce the extent
2to which the customer does business with the employer.
32. An employer shall not require a mental health provider to
4enter into a noncompete agreement.
53. A mental health professional subject to a noncompete
6agreement who seeks a civil remedy to invalidate the agreement
7shall be awarded court costs and attorney fees to be paid by
8the employer enforcing the agreement.
94. A noncompete agreement entered into, or the renewal of
10an existing agreement between, an employer and a mental health
11professional on or after the effective date of this Act shall
12be void and unenforceable.
13 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
14importance, takes effect upon enactment.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill prohibits an employer from requiring a mental
19health professional to enter into a noncompete agreement. The
20bill defines “mental health professional” and “noncompete
21agreement”.
22The bill provides that a mental health professional
23subject to a noncompete agreement who seeks a civil remedy
24to invalidate the agreement shall be awarded court costs
25and attorney fees to be paid by the employer enforcing the
26agreement.
27A noncompete agreement entered into, or the renewal of an
28existing agreement between, an employer and a mental health
29professional on or after the effective date of the bill shall
30be void and unenforceable.
31The bill takes effect upon enactment.
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