A bill for an act relating to the prohibition of noncompete clauses in certain employment contracts entered into by the university of Iowa hospitals and clinics, and including effective date provisions. (Formerly HF 2072.) Effective date: 06/02/2026.
Summary
HF 2254 requires the University of Iowa Hospitals and Clinics to adopt a policy prohibiting noncompete clauses in employment contracts with certain licensed health care professionals. The covered workers are advanced registered nurse practitioners, licensed practical nurses, pharmacists, physicians, physician assistants, and registered nurses. The bill defines a noncompete clause broadly as any restriction that limits a covered employee’s ability to practice in a geographic area or for a set period after leaving employment.
The prohibition applies to contracts entered into, extended, or renewed on or after the bill’s effective date, and the act takes effect immediately upon enactment. In practical terms, the bill limits the university hospital system’s ability to use post-employment mobility restrictions for these categories of clinicians, while leaving other contract terms unaffected. Because it is directed specifically at the University of Iowa Hospitals and Clinics, it is a targeted employment-law change rather than a statewide ban on noncompetes in all health care settings.
Impact
The bill amends section 262.9 of the Iowa Code by adding a new subsection requiring the Board of Regents to develop a policy barring noncompete clauses in specified employment contracts at the University of Iowa Hospitals and Clinics. It affects employment agreements for a defined set of health care professionals and applies prospectively to new, extended, or renewed contracts after the effective date. The measure narrows the hospital system’s contracting authority and may increase workforce mobility and recruiting flexibility for covered clinicians.
Sentiment
The voting history suggests the bill had generally favorable support, with passage in both chambers by substantial margins. The Senate Workforce Report passed unanimously, indicating committee-level agreement, and the bill ultimately became law as Acts Chapter 1173. The presence of a failed motion to suspend the rules for an amendment suggests some procedural disagreement, but not enough to prevent final enactment.
Contention
The main point of contention appears to have been whether and how to modify the bill through amendment, as reflected in the failed motion to suspend the rules for amendment H-8350 to amendment H-8319. While the bill itself was broadly supported, the debate likely centered on the scope and details of restricting noncompete clauses, particularly balancing employer contract rights against clinician mobility and recruitment concerns. No committee transcript is available, so the record shows procedural opposition more clearly than substantive objections.
Similar To
A bill for an act relating to the prohibition of noncompete clauses in certain employment contracts entered into by the university of Iowa hospitals and clinics, and including effective date provisions.(See HF 2254.)
A bill for an act relating to the prohibition of noncompete clauses in certain employment contracts entered into by the university of Iowa hospitals and clinics, and including effective date provisions.(See HF 2254.)
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