Usually, a covenant not to compete is when an Iowa employee agrees not to work for an employer's competitors when the employee leaves the company. Covenants not to compete are also known as "non-compete clauses". Signing such an agreement may either be a condition for being employed, or the employee may receive additional compensation for doing so.

When are Covenants not to Compete Unenforceable?

Whether or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. Although the interests of employers are important, courts in Iowa also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Fort Madison that are unreasonably large.

Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a rational way to the employer's industry. Finally, the covenant not to compete must have a legitimate business purpose which is behind the employer's motivation for requiring the agreement.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Since covenants could restrict your rights, you may wish to hire a Fort Madison, Iowa lawyer to review any provisions. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.