Bill Text: IA SSB1106 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act prohibiting employers from requiring certain mental health professionals to enter into noncompete agreements and including effective date provisions.

Spectrum: Committee Bill

Status: (Introduced) 2023-01-31 - Subcommittee: Garrett, Rowley, and Trone Garriott. [SSB1106 Detail]

Download: Iowa-2023-SSB1106-Introduced.html

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Senate Study Bill 1106 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
HEALTH AND HUMAN SERVICES
BILL BY CHAIRPERSON EDLER)
A BILL FOR
An Act prohibiting employers from requiring certain mental
health professionals to enter into noncompete agreements and
including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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S.F. _____
Section 1. NEW SECTION . 147.164 Mental health professionals
—— noncompete agreements prohibited.
1. As used in this section, unless the context otherwise
requires:
a. “Confidentiality agreement” means an agreement between an
employer and an employee by which the employee agrees not to
disclose specified information designated by the employer as
confidential.
b. “Mental health professional” means the same as defined in
section 228.1, and includes all of the following:
(1) Individuals who are completing their supervisory
requirement under a temporary license.
(2) Licensed master social workers with a current and active
supervision plan on file with the board of social work.
c. (1) “Noncompete agreement” means an agreement between
an employer and an employee that restricts the employee from
performing any of the following:
(a) Work for a different employer for a specified period of
time.
(b) Work in a specified geographical area.
(c) Work for a different employer that is similar to
the employee’s work for the employer who is a party to the
agreement.
(2) “Noncompete agreement” does not include any of the
following:
(a) A nonsolicitation agreement.
(b) A confidentiality agreement.
(c) An agreement prohibiting use or disclosure of trade
secrets or inventions.
d. “Nonsolicitation agreement” means an agreement between
an employer and an employee that prohibits solicitation by
the employee, upon termination of employment, of any of the
following:
(1) An employee of the employer to leave employment by the
employer.
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S.F. _____
(2) A customer of the employer to cease or reduce the extent
to which the customer does business with the employer.
2. An employer shall not require a mental health provider to
enter into a noncompete agreement.
3. A mental health professional subject to a noncompete
agreement who seeks a civil remedy to invalidate the agreement
shall be awarded court costs and attorney fees to be paid by
the employer enforcing the agreement.
4. A noncompete agreement entered into, or the renewal of
an existing agreement between, an employer and a mental health
professional on or after the effective date of this Act shall
be void and unenforceable.
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 prohibits an employer from requiring a mental
health professional to enter into a noncompete agreement. The
bill defines “mental health professional” and “noncompete
agreement”.
The bill provides that a mental health professional
subject to a noncompete agreement who seeks a civil remedy
to invalidate the agreement shall be awarded court costs
and attorney fees to be paid by the employer enforcing the
agreement.
A noncompete agreement entered into, or the renewal of an
existing agreement between, an employer and a mental health
professional on or after the effective date of the bill shall
be void and unenforceable.
The bill takes effect upon enactment.
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