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Can a home care agency make caregivers sign a non-compete in Iowa?
Last verified October 17, 2026 · All Iowa resources
Generally enforceable if reasonable. Iowa has no general non-compete statute. Courts enforce covenants that are reasonably necessary to protect the business, not unreasonably restrictive in time and area, and not against the public interest. Iowa's statutory ban covers health care staffing agencies that place nursing workers in facilities, not home care agencies serving clients at home, so caregiver non-competes are judged under the general test.
| Status | Generally enforceable if reasonable |
|---|---|
| Healthcare-specific rule | Health care employment agencies that place workers providing nursing services with health care entities on a temporary or temp-to-hire basis may not include non-compete clauses in contracts with those workers or facilities, and may not charge liquidated damages or fees when a facility hires the worker permanently (Iowa Code § 135Q.2(3)), with a narrow exception for certain immigration-sponsored placements. A 2026 law requires University of Iowa hospitals and clinics to bar non-competes for nurses, pharmacists, physicians and physician assistants. |
| Statute | Iowa Code § 135Q.2 (health care employment agencies only) |
| Latest change | 2026-06-02 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
The general standard comes from Iowa case law summarized in a law firm survey. If your agency also supplies temporary aides or nurses to facilities, the staffing-agency ban and client no-hire fee ban may apply.
General information, not legal advice.
More for Iowa
Non-compete rules by state: other states
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