Bill Text: IA SSB1106 | 2023-2024 | 90th General Assembly | Introduced
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 - Dead) 2023-01-31 - Subcommittee: Garrett, Rowley, and Trone Garriott. [SSB1106 Detail]
Download: Iowa-2023-SSB1106-Introduced.html
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
1
health
professionals
to
enter
into
noncompete
agreements
and
2
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2000XC
(2)
90
je/rn
S.F.
_____
Section
1.
NEW
SECTION
.
147.164
Mental
health
professionals
1
——
noncompete
agreements
prohibited.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Confidentiality
agreement”
means
an
agreement
between
an
5
employer
and
an
employee
by
which
the
employee
agrees
not
to
6
disclose
specified
information
designated
by
the
employer
as
7
confidential.
8
b.
“Mental
health
professional”
means
the
same
as
defined
in
9
section
228.1,
and
includes
all
of
the
following:
10
(1)
Individuals
who
are
completing
their
supervisory
11
requirement
under
a
temporary
license.
12
(2)
Licensed
master
social
workers
with
a
current
and
active
13
supervision
plan
on
file
with
the
board
of
social
work.
14
c.
(1)
“Noncompete
agreement”
means
an
agreement
between
15
an
employer
and
an
employee
that
restricts
the
employee
from
16
performing
any
of
the
following:
17
(a)
Work
for
a
different
employer
for
a
specified
period
of
18
time.
19
(b)
Work
in
a
specified
geographical
area.
20
(c)
Work
for
a
different
employer
that
is
similar
to
21
the
employee’s
work
for
the
employer
who
is
a
party
to
the
22
agreement.
23
(2)
“Noncompete
agreement”
does
not
include
any
of
the
24
following:
25
(a)
A
nonsolicitation
agreement.
26
(b)
A
confidentiality
agreement.
27
(c)
An
agreement
prohibiting
use
or
disclosure
of
trade
28
secrets
or
inventions.
29
d.
“Nonsolicitation
agreement”
means
an
agreement
between
30
an
employer
and
an
employee
that
prohibits
solicitation
by
31
the
employee,
upon
termination
of
employment,
of
any
of
the
32
following:
33
(1)
An
employee
of
the
employer
to
leave
employment
by
the
34
employer.
35
-1-
LSB
2000XC
(2)
90
je/rn
1/
2
S.F.
_____
(2)
A
customer
of
the
employer
to
cease
or
reduce
the
extent
1
to
which
the
customer
does
business
with
the
employer.
2
2.
An
employer
shall
not
require
a
mental
health
provider
to
3
enter
into
a
noncompete
agreement.
4
3.
A
mental
health
professional
subject
to
a
noncompete
5
agreement
who
seeks
a
civil
remedy
to
invalidate
the
agreement
6
shall
be
awarded
court
costs
and
attorney
fees
to
be
paid
by
7
the
employer
enforcing
the
agreement.
8
4.
A
noncompete
agreement
entered
into,
or
the
renewal
of
9
an
existing
agreement
between,
an
employer
and
a
mental
health
10
professional
on
or
after
the
effective
date
of
this
Act
shall
11
be
void
and
unenforceable.
12
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
13
importance,
takes
effect
upon
enactment.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
prohibits
an
employer
from
requiring
a
mental
18
health
professional
to
enter
into
a
noncompete
agreement.
The
19
bill
defines
“mental
health
professional”
and
“noncompete
20
agreement”.
21
The
bill
provides
that
a
mental
health
professional
22
subject
to
a
noncompete
agreement
who
seeks
a
civil
remedy
23
to
invalidate
the
agreement
shall
be
awarded
court
costs
24
and
attorney
fees
to
be
paid
by
the
employer
enforcing
the
25
agreement.
26
A
noncompete
agreement
entered
into,
or
the
renewal
of
an
27
existing
agreement
between,
an
employer
and
a
mental
health
28
professional
on
or
after
the
effective
date
of
the
bill
shall
29
be
void
and
unenforceable.
30
The
bill
takes
effect
upon
enactment.
31
-2-
LSB
2000XC
(2)
90
je/rn
2/
2
