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. The sectors ultimately depend on the geographical area of the original company. Non-competition is expected to have a smaller reach in downtown Davenport compared to a non-competition in a more rural part of Iowa. The calendar is generally the same in most non-competitions, regardless of location. In Iowa, one to two years are considered appropriate. In principle, the law allows the company to have a chance to succeed after the loss of its employee.
In addition, if the company has failed to secure the previous employee`s customers or generate enough business to compensate for the employee`s loss, it is on business. Iowa partially enforced a non-compete agreement, which it considered too broad in scale and scope, as written. The protected area must be in relation to the legitimate interests of the employer and should not be excessively restrictive to the worker. There must be a reasonable base for the protected area. The delay must be reasonable. But abuses occur when employers try to spread by protecting access to competition. Like companies that try to impose non-compete bans on employees with lower wages/levels that have no relationship with customers. Suppose a janitor wants to leave his employer for a company that pays him a higher hourly wage.
Is it really reasonable to impose a non-compete clause when the janitor has never spoken to a real employer customer and does nothing but show up to do his job? Unlike a seller has frequent contact with customers and could possibly take janitorial customers to another company? 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. There is at least one case in Iowa where the original non-competition clause provides for a seven-year term within a 350-mile radius of Des Moines.