Allowed if reasonable

Non-compete law in Utah

Utah's Post-Employment Restrictions Act voids any employee noncompete lasting more than one year after employment ends (agreements from 2016-05-10), on top of common-law requirements. Since 2026-05-06 (HB 270, SB 111) a person may not enter a post-employment noncompete with a licensed healthcare worker (33 license types) and may not enter noncompete, nonsolicitation or certain nondisclosure agreements with a veterinarian, except a veterinarian holding at least a 5% ownership interest; both void if violated. Broadcasting employees are covered only by a narrow cause-based exception, and an employer that loses a suit to enforce an unenforceable covenant pays the employee's costs, fees and damages.

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Employee non-competes
Only within the statute's conditions
Pay floor
None in the statute
Pay floor (broadcasting employee)
$913 a week in 2026
Duration
One year from the day employment ends; a longer covenant is void (Utah Code 34-51-201(1)(a),(c)); common-law requirements also apply. Broadcasting employees: no longer than the earlier of 1 year after employment ends or the end of the original contract term (34-51-201(2)(b)).

Exceptions and special rules

  • Sale of a business: the statute allows a non-compete given by a seller.
  • Sale of a business: a non-compete or healthcare non-compete related to or arising out of the sale is allowed if the individual receives value related to the sale (34-51-202(1)(b))
  • Severance: a reasonable severance agreement mutually and freely agreed in good faith at or after termination may include a non-compete; still subject to common law (34-51-202(1)(a),(2))
  • Veterinarian with at least a 5% ownership interest in the person's business may be bound (34-51-201(3)(b))
  • Non-compete definition excludes nonsolicitation, nondisclosure and confidentiality agreements (34-51-102(8)(b)); healthcare workers whose job does not require practicing under their license are not 'healthcare workers' (34-51-102(5)(b))
  • Broadcasting: valid only if the employee is an exempt broadcasting employee, the covenant is in a written contract of reasonable duration, and the company fired the employee for cause or the employee breached the contract so that employment ended (34-51-201(2)(a))
  • Healthcare worker (licensed and practicing as: APRN/CRNA/nurse intern, RN, LPN, medication aide, nurse midwife, physician, PA, dentist, optometrist, podiatric physician, naturopathic physician, psychologist and certified psychology resident, MFT/associate MFT, clinical mental health counselor, mental health therapist, social workers, behavioral health coach/technician, behavior analysts, dietitian, genetic counselor, massage therapist, PT, radiology practitioner, respiratory care practitioner, substance use disorder counselor). On or after 2026-05-06 a person and a healthcare worker may not enter a 'healthcare non-compete agreement' (a post-employment restriction on services within the license scope for a time or in an area); void if violated; sale-of-business and severance exceptions still apply. A nonsolicitation agreement may not stop the worker informing patients of current or future place of employment; void if violated (34-51-203). (Utah Code 34-51-102(4)-(5), 34-51-201(1)(b), 34-51-202, 34-51-203 (H.B. 270, 2026 ch. 341))
  • Veterinarian (Utah Code 58-28-102). On or after 2026-05-06 a person and a veterinarian may not enter a veterinarian non-compete (including a restriction on working in a specific geographic area), nonsolicitation agreement, or nondisclosure clause barring discussion of the veterinarian's experience working for the person; all void. Exception: veterinarian with at least 5% ownership interest may be bound by a non-compete. An out-of-state forum clause in a veterinarian non-compete entered on/after 2026-05-06 is void and against Utah public policy. (Utah Code 34-51-201(3)-(4), 34-51-205, 34-51-206 (S.B. 111, 2026 ch. 66))
  • Broadcasting employee (television, cable, radio; program creators). See additionalThresholds and maxDuration: valid only for exempt broadcasting employees, in a written contract, only after for-cause termination or employee breach, for at most the earlier of one year or the end of the original contract term. (Utah Code 34-51-102(1)-(3), 34-51-201(2))
  • Health care worker using a health care services platform (shift work as an independent contractor at a health care facility); excludes physicians and advanced practice providers (APRNs, certified nurse midwives, physician assistants) since the 2026 amendment. A health care services platform may not require a health care worker to enter into a non-compete agreement, and may not restrict the worker from finding or accepting shifts on another platform or employment with a provider or facility. Enacted by S.B. 228 (2025), effective 2025-05-07; amended by Laws of Utah 2026 ch. 78. (Utah Code 58-90-101(1)(d), (4))

Non-solicitation clauses

Not a 'non-compete agreement' (34-51-102(7),(8)(b)), so the one-year cap does not apply to general customer/employee nonsolicits. Exceptions since 2026-05-06: healthcare workers cannot be barred from telling patients where they work now or will work (34-51-203); veterinarian nonsolicitation agreements are void (34-51-206). Fee-shifting in 34-51-301 covers unenforceable nonsolicitation agreements.

Contracts naming another state's law

Only for veterinarians: a provision in a veterinarian non-compete entered on/after 2026-05-06 requiring disputes to be resolved outside Utah is void and against public policy (34-51-201(4)). No general rule for other workers.

Remedies

If an employer seeks to enforce a non-compete, healthcare non-compete, nondisclosure clause or nonsolicitation agreement in arbitration or court and it is determined unenforceable, the employer is liable for the employee's arbitration costs, attorney fees, court costs and actual damages (34-51-301).

Which agreements it covers

One-year cap: agreements entered into on or after 2016-05-10. Healthcare and veterinarian rules: 'on or after May 6, 2026, a person ... may not enter'; HB 270 and SB 111 take effect 2026-05-06. Earlier agreements are not addressed by the text read. 2016-05-10 (one-year cap); 2026-05-06 (healthcare worker and veterinarian rules)

Recent changes

  • 2026-05-06. H.B. 270 'Healthcare Worker Post-employment Amendments' (Laws of Utah 2026 ch. 341; signed 2026-03-24) amended 34-51-102, -201, -202, -301, added 34-51-203 and repealed 34-51-101 (title): healthcare non-competes void for agreements from 2026-05-06. Source
  • 2026-05-06. S.B. 111 'Veterinary Post-employment Amendments' (Laws of Utah 2026 ch. 66; signed 2026-03-17) added veterinarian non-compete, nonsolicitation and nondisclosure limits (34-51-201(3)-(4), -205, -206). Chapter numbers taken from the code's own amendment notes. Source
  • 2026-03-06. H.B. 203 'Non-Compete Amendments' (Rep. Clancy: would restrict enforcement against employees, ban enforcement against independent contractors, require the covenant with the job offer) was filed in 'House file for bills not passed' - NOT enacted. Source
  • 2025-05-07. S.B. 228 (2025) enacted the health care services platform registration section (now Utah Code 58-90-101): platforms may not require health care workers to sign non-competes; amended in 2026 (ch. 78) to exclude physicians and advanced practice providers from "health care worker". Source
  • 2016-05-10. Post-employment Restrictions Act (2016 ch. 153) took effect: one-year cap on employee non-competes; later amended 2018 ch. 465 (broadcasting) and 2019 ch. 132. Source

Primary sources

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