An Iowa non-compete agreement is a written contract in which a worker promises not to compete with a business for a set time after the working relationship ends. Iowa Code § 147.161 limits these agreements for licensed mental health professionals.[1] Build a free agreement with the builder below, or download the PDF and fill it in.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Iowa law. If you notice an error or outdated information, please contact us.
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Businesses use a covenant not to compete to protect information that would hurt them if a competitor got it. An employer often asks for the agreement when a worker will see information such as this:
Some employers use a non-disclosure agreement instead when confidential information is the only concern. A business may also use a non-compete agreement in a sale, a merger, or a partnership.
The Iowa template is a three-page form with seven numbered sections. It names the parties, sets how long the agreement lasts, and lists what the worker may not do. You can fill in the blanks online, or download the PDF and complete it with our online PDF editor.
Page 1 opens with the Effective Date. It then names two parties and gives an address for each. The form calls the worker the Agent and the business the Company. The recitals state that the Agent is an employee or independent contractor of the Company.
Section 1 starts the agreement on the Effective Date. It runs for as long as the Agent works for the Company, and then for the number of years you enter in the blank. The right length depends on the job and the information involved, so choose a period you can explain.
Section 2 says the agreement is not a contract of employment. It covers only the promises written in it and nothing further. If you also need terms for pay, duties, or hours, put them in a separate employment contract.
Section 3 is the non-competition promise. The Agent agrees not to do business with, work for, or hold an interest in a competing business. The form gives you these choices:
Write each term in plain words so both parties understand it. If the Agent is a licensed mental health professional, read the Iowa laws section below before you fill in the area or the time period.
Four more sections are already written in the template:
The last page has a signature block for the Agent and one for the Company. Each block has lines for a signature, a printed name, and a title. Print the finished form, have both parties sign every copy, and keep the copies in a safe place.
A non-compete promise, a non-solicitation promise, and a non-disclosure promise protect a business in different ways. This template combines the first two in one form and leaves secrecy to a separate document. The table shows how the three differ and where each one appears.
| Promise | What the worker agrees to | In this template |
|---|---|---|
| Non-compete | Not to work for, or hold an interest in, a rival business | Section 3 |
| Non-solicitation | Not to lure away staff, customers, contractors, or vendors | Section 4 |
| Non-disclosure | Not to share confidential details | A separate NDA |
Many businesses pair these promises. The worker should read each one on its own, because each limits something different.
The Iowa non-compete law covered on this page is Iowa Code § 147.161, and it protects licensed mental health professionals. It bars an employer from agreeing to three kinds of terms with a licensee, and it makes any contrary provision void.[1]
Section 147.161 says:
An employer shall not enter into an agreement with a licensed mental health professional that limits the location at which the licensee may practice, prohibits the licensee from contacting for professional services a person previously treated by the licensee, or imposes a time restriction on the practice of the licensee.
In plain words, an agreement with a licensed mental health professional cannot do any of these three things:
A provision that is contrary to this section is void and unenforceable. That holds for agreements made before, on, or after June 1, 2023.[1]
This statute names licensed mental health professionals. This page does not state how Iowa law treats a non-compete signed by anyone else. Ask an Iowa attorney to review your terms before anyone signs.
Iowa franchise law also touches non-competes. When a franchisor withdraws from the market and does not renew a franchise, it must agree not to enforce the former franchisee's covenant not to compete (Iowa Code § 523H.8).[2]
Take a few minutes to review the form before anyone signs. A clear, specific agreement is easier for both sides to follow and easier for a lawyer to review. These habits help:
If the worker is a licensed mental health professional, compare every term with Iowa Code § 147.161 in the laws section. A worker who is an independent contractor may also want an independent contractor agreement for the work itself. When in doubt, have an Iowa attorney review the finished agreement.
Iowa Code § 147.161 is the Iowa non-compete law covered here. It applies to agreements between an employer and a licensed mental health professional, and a provision contrary to it is void and unenforceable. The answers below explain what voids a non-compete agreement and how enforceable one is.[1]
Under Iowa Code § 147.161, a provision of an agreement between an employer and a licensed mental health professional that is contrary to the statute is void and unenforceable. That includes an agreement made before, on, or after June 1, 2023.[1]
For a licensed mental health professional, the statute limits what an employer can put in the agreement. Iowa Code § 147.161 bars an employer from agreeing to any of these terms:[1]
For other workers, this page does not state a rule. An Iowa attorney can tell you how a court may treat your agreement.
General information, not legal or tax advice.
