If, as an employee, you have accepted a job from and by a company in Iowa and are invited to sign a non-compete agreement, or if, as an employer, you want a major employee to sign a non-compete, it is advisable to work with an experienced lawyer to ensure that the agreement is appropriate, fair and acceptable before signing. Knowledge of strictly confidential information as well as the obligation of direct personal contact with customers and company deliveries may be applicable. Iowa has maintained an agreement not to compete if the worker is involved in collecting employer customers and unauthorized disclosure of trade secrets. It depends on the details of your non-compete agreement. Your new business may be a form of direct competition that violates a non-compete agreement, but other agreements can only impose restrictions on the employment of a competitor instead of becoming one. You will certainly want to discuss with a lawyer your possible introduction of cases to verify what your non-compete agreement allows. Non-competitive agreements between a franchisor and a franchisee are intended not only to protect the interests of direct parties, but also to protect other franchisees from competitive activities. To the extent that such non-competitive agreements are required by all franchisees, any franchisee is thus protected from competition from other franchisees. The mutual protection of franchise agreements justified the application of competition on all franchise sites. The Iowa Supreme Court has introduced a three-factor test for the validity of alliances, not to compete.
To be enforceable, the Confederation must be: Reasonable Restrictions. It goes without saying that an employer wants to protect its business from an employee who uses personal knowledge or competition training. The employer also wants to protect its customers from foreclosure. The employer may ask a worker to sign an agreement, not to compete with the company after leaving the company in order to protect its interests. However, the employer cannot exclude a former worker from earning a living, at least not indefinitely. The law requires that any agreement be reasonable in its magnitude and duration. In addition to the desire to prevent patients, customers or customers from being robbed by a former employee, a company must also protect its business secrets, training procedures and other sensitive information. The employer may ask the employee or the independent contractor to sign a non-compete clause, but the employer cannot unduely violate the former employee`s right to earn a living.
Iowa law states that the agreement is appropriate for both parties. For example, if a dental practice in downtown Chicago had a 20-mile, 20-year non-competition clause, it is very likely that the courts would say that it is inappropriate because of the scope and timing.