The Iowa Court of Appeals recently reversed an Iowa District Court ruling and upheld a seven-year, 350-mile radius covenant not to compete. The main issue on appeal was the standard under which a non-compete between owners differs from a non-compete between an employer and an employee.

The key to drafting an enforceable non-compete is finding the right parameters. In a recent Iowa case from Guthrie County, Sutton v. Iowa Trenchless, L.C., CV081386, a seven-year non-compete agreement within a 350-mile radius was declared too restrictive.