Iowa Covenant Not to Compete for a Construction Business - Noncompetition
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How to fill out Covenant Not To Compete For A Construction Business - Noncompetition?
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FAQ
In general, the state of Iowa has found that non-compete agreements are enforceable as long as they meet the criteria above and are not too broadly written that they will not hold up in court.
A covenant not to compete will be deemed valid if it only restricts the employee's opportunity to compete while they remain employed with the employer requiring the covenant, but imposes no restrictions on the employee once they separate from the employment.
Iowa non-compete agreements are generally enforceable if they are found necessary to protect an employer's business', not unreasonably restrictive and are not prejudicial to public interest.
The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.
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In general, the state of Iowa has found that non-compete agreements are enforceable as long as they meet the criteria above and are not too broadly written that they will not hold up in court.
Commonly, Iowa has found one to three years is reasonable in length often depending on the employee's length of employment with your company.
If your non-compete agreement is a validly-executed agreement with a reasonable scope, it is not likely to get out of the agreement. It may only be possible to get out of a non-compete agreement if: The agreement was not validly executed such as if you signed under coercion, duress, or without knowledge of its terms.
You may be able to buy your way out of the non-compete. Franchisees, for example, occasionally buy their way out of non-competes by paying the franchisor the present value of royalties that would be due if the franchisee continued operating through the duration of the non-compete.