Updated October 16, 2023
An Iowa non-solicitation agreement is a contract that prohibits an employee from soliciting their employer’s clients, personnel, and contractors for their own benefit after leaving the job. Similar to non-compete and non-disclosure agreements, non-solicitation agreements are usually presented as a condition of employment.
Is It Legally Enforceable in Iowa?
Yes. Non-solicitation agreements are enforceable in Iowa if they are:
- Reasonably necessary for the protection of the employer’s business
- Not unreasonably restrictive of the employee’s rights
- Not prejudicial to the public interest
(Iowa Glass Depot. Inc. v. Jindrich, 338 N.W.2d 376, 381 (Iowa 1983))
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What Types of Solicitation Can Be Prohibited?
A non-solicitation covenant in Iowa can prohibit a former employee from soliciting the employer’s:
- Past or current clients
- Past or current employees
- Independent contractors
- Other business associates (e.g. supplier)
What Should Be Included in the Agreement?
For a non-solicitation agreement to hold up in a court of law in Iowa, it must include reasonable restrictions with regard to:
1. Duration
The time limit of the non-solicitation covenant must be considered reasonably necessary to protect the employer’s business interests while balancing the rights of the employee. This typically can range anywhere from several months to a few years.
2. Geographical Limit
The non-solicitation agreement must specify the location or area where the terms of the restrictive covenant apply. For example, it may apply to the city or region where the employer is based.
3. Scope of Restricted Activities
The restrictions set by the agreement prohibit the individual from engaging in certain activities, such as soliciting the employer’s active client list. The scope of the restricted activities must be considered reasonable and fair to both the employer and the employee while protecting public interest.
Related Forms
Download: PDF, MS Word, OpenDocument
Download: PDF, MS Word, OpenDocument