Federal & State Regulations | Employment contracts - Iowa

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Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Iowa law is similar to federal concerning union membership. There are also other provisions related to employment contracts.

Union membership

An employer may not enter into a contract to exclude from employment members of a union or individuals who refuse to join or withdraw membership from a union. §731.3

Waiver of rights

An employee can not be required to enter into an agreement to waive his or her rights to unemployment compensation benefits, nor agree to pay any portion of the employer’s required contributions. §96.15

An employee can not be required to enter into an agreement waiving his or her rights to workers’ compensation benefits; however, a person who has a physical defect which may increase that individual’s risk of injury may, with approval from the commissioner, enter into a written agreement with the employer to waive benefits for injuries occurring as a direct result of the defect. §85.55