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Iowa Non-Solicitation Agreement

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 company. Similar to non-compete and non-disclosure agreements, non-solicitation agreements are usually presented as a condition of employment.
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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))

Types of Solicitation to Prohibit

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 to Include

What should you include in a non-solicitation 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. Time Restraint

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 Restraint

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. Specific Action

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

Iowa Non-Compete Agreement

Download: PDF, MS Word, OpenDocument




Iowa Non-Disclosure Agreement

Download: PDF, MS Word, OpenDocument