SF 496: Prohibition of Low Wage Noncompete Agreements

Legislators introduced the bill to stop the trend of some nationwide fast food companies placing employees in agreements and making it a breach of the contract if the employee left one low-wage fast food business for another. ABI worked to limit the bill to address only these limited circumstances without effect on non-compete agreements where appropriate. The legislation, SF496, can be found here and has advanced to the House Commerce Committee. As a refresher, the bill passed the Senate 45-0 last legislative session and was referred to a committee in the House. Since Iowa has a two-year General Assembly, the bill starts in the House this year and does not need to pass the senate again, unless there are changes made in the House.