Paid Content | Kim Baer joins us to talk about non-competes. One of the issues that we are often asked about by clients is whether their non-compete is valid in Iowa. The Baer Law Office are also asked by their business clients to draft non-compete clauses for new employees and the question comes up about what is enforceable.
What is a non-compete? In Iowa an employer and employee can enter into a written agreement that restricts the employee’s ability to compete with the employer’s business when the employee quits or is terminated.
Selling business non-competes also come up when business owner selling his or her business and the buyer of the company wants to make sure the seller is not going to sell the business and then turn right around and open a competing business. Under Iowa law, a properly drafted non-compete agreement is valid.
When is it enforceable? The courts do not favor non-compete agreements, but they will enforce them in Iowa if:
1) the non-compete is reasonably necessary to protect the employer’s business
2) is it reasonably restrictive; and
3) is it prejudicial to the public’s interest.