UTAH LAW

Non-Compete Agreements in Utah What Workers and Employers Must Know

Plain-English rules, limits, exceptions, and your action plan under Utah law

Utah Law Explained is for Utah workers and small businesses. Non-compete agreements here are enforceable only under strict conditions, and many are not legal as written. Utah limits how long these contracts can last, who they can cover, and what they can restrict.

This guide explains the statute, what courts mean by reasonable, who is covered by recent reforms, and the practical steps to sign, challenge, or narrow a clause. You will also see physician and gig-worker updates, common drafting mistakes, and remedies that actually work.

By the end, you will have a Utah-specific roadmap to handle non-compete agreements with confidence. This is legal information, not legal advice. When in doubt, talk with a Utah employment attorney.

Utah Rules on Non-Competes

Utah is an at-will employment state, but non-competes are judged under contract law and state statute.

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Time Limit

For most employees, a non-compete cannot exceed one year after employment ends. Longer periods are unenforceable under Utah Code §34-51-201.

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Consideration

There must be valid consideration. Initial employment or a promotion usually satisfies this, but midstream agreements need something real in return.

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Industry Exceptions

Reforms limit non-competes for many medical professionals. 1099 healthcare workers generally cannot be bound by non-competes.

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Scope Matters

Even if within one year, a clause must be reasonable in geography, duration, and protected interests or it risks being struck.

Reasonableness Factors

Courts weigh whether the restriction reasonably protects legitimate interests without placing undue hardship on the worker.

geographic_scope Too broad is risky. A statewide or nationwide ban for a local business is likely overbroad.

duration One year is the statutory ceiling for most employees. Shorter can still be excessive if not justified.

legitimate_interest Trade secrets, confidential client lists, or paid specialized training can justify a narrow restraint.

undue_hardship If the clause blocks a worker from earning a living, expect pushback.

Courts can refuse enforcement if the balance tips against the employee. Narrow and specific beats broad and vague.

Coverage, Practical Moves, and Remedies

Who Is Covered

Most Employees: May face non-competes, but the one-year limit applies and clauses must be reasonable.

Physicians and Healthcare: Utah reforms restrict non-competes for many medical roles. 1099 healthcare workers are generally protected.

Independent Contractors: Harder to enforce unless tied to trade secrets or a sale of goodwill.

Executives or Sellers: Stricter limits can apply in a business sale, where longer or wider scope may be allowed.

If You Are Asked to Sign

Read Carefully: Check the duration, geography, and the exact activities restricted.

Ask Questions: Employers often narrow terms when pressed to justify them.

Negotiate: Shorten the time and shrink the map. Tie the ban only to competitive roles or accounts you actually touched.

Get It In Writing: Side promises do not override signed terms.

Remedies If You Are Bound Now

Declaratory Action: Ask a Utah court to rule the clause unenforceable.

Negotiated Release: Employers often agree to narrow or drop terms, especially with a clean departure.

Defenses: Employer breach can collapse the restraint. Over-one-year terms are void by statute.

Statute Snapshot

Primary Citation: Utah Code §34-51-201 sets the one-year limit for most employment non-competes.

Practice Tip: Pair any non-compete with a targeted non-solicit and a confidentiality clause to protect real interests without overreach.

Step-by-Step Action Plan

Identify Scope

List what is restricted: roles, clients, services, and regions. Compare against your actual job and accounts.

Check the Clock

Confirm the duration is at or under one year from separation. Anything longer is not enforceable for most employees.

Narrow and Document

Propose a smaller territory and role-based limits. Get written edits or an addendum before signing.

Get Advice

Have a Utah employment lawyer review red flags. A short review can prevent a long dispute later.

If Already Bound

Ask for a release or file for a declaratory judgment. Keep records of employer breaches or unpaid amounts.

Need Help Applying This To Your Job?

Every situation is different. A quick consult can clarify your leverage, narrow terms, or map a clean exit plan.

Talk to a Utah Attorney

Video and Social Learning Hub

YouTube Resources

▶ Utah non-competes explained ▶ Quick legal overview: enforceability and limits ▶ General Q and A on non-competes

Instagram Highlights

📸 Revise non-competes to fit real interests 📸 1099 healthcare workers: Utah protections 📸 What to know before you sign

Key Takeaways

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Most Utah employment non-competes cannot exceed one year after separation and must be reasonable to enforce.

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Geography, duration, legitimate interests, and worker hardship drive the court analysis.

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Medical roles and 1099 healthcare workers get added protections. Narrow drafting and clear trade secret safeguards work best.

This page is legal information, not legal advice. When in doubt, get counsel before you sign or challenge a non-compete.

Next Step

Ready to protect your career or your business correctly? Use the plan above and get a short legal check before you commit.

Book an Employment Consult

A focused review can narrow terms, confirm statutory compliance, and reduce the chance of later disputes.

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