If you’re an employee or employer in Utah facing a non-compete agreement, it’s important to understand what the law actually allows. Utah courts only enforce non-competes that are reasonable in scope, duration, and geography — and that genuinely protect legitimate business interests like trade secrets or customer goodwill. Knowing your rights under Utah Code § 34-51-201 helps you make informed choices before signing or challenging these contracts.
1. What Is a Non-Compete Agreement?
A non-compete agreement is a contract where an employee agrees not to work for a competing business or start a similar company for a specific time after leaving their job. In Utah, these agreements are legal but must be narrow, reasonable, and tied to protecting a valid business interest.
2. Are Non-Competes Enforceable in Utah?
Yes — but only under strict conditions. Utah law requires that a non-compete:
- Protect legitimate business interests (like trade secrets or client goodwill)
- Be limited to a reasonable geographic area
- Last no longer than one year in most cases
- Not create an undue hardship for the employee
If a non-compete is too broad, Utah courts can modify or strike it down entirely.
3. What Can a Utah Non-Compete Protect?
- Trade secrets and confidential information
- Customer relationships built through the employer
- Specialized training or investment made by the company
Basic skills or general knowledge you gain from a job are not protected under Utah law.
4. When Should You Sign a Non-Compete?
Before signing, make sure you fully understand:
- The specific time and area restrictions
- What business interests it protects
- Whether the agreement limits your ability to earn a living
If any clause feels unfair or overly broad, get advice from a Utah employment lawyer before signing.
5. What Happens If You Violate a Non-Compete?
If an employer believes you breached a non-compete, they can sue for an injunction or damages. However, courts will only enforce the agreement if it meets Utah’s legal standards of fairness and necessity.
6. How Long Do Utah Non-Competes Last?
Utah’s Post-Employment Restrictions Act typically limits non-competes to one year after employment ends. Anything longer may be considered unreasonable unless special circumstances justify it.
7. How Can You Challenge an Unfair Non-Compete?
You can challenge a non-compete in Utah court if it:
- Lacks a legitimate business purpose
- Restricts too large an area or too much time
- Creates significant hardship or unemployment risk
Challenges are often filed as declaratory actions, where the court reviews and potentially limits or voids the clause.
8. Can Employers Enforce Non-Competes Immediately?
Employers can seek temporary court orders to stop an employee from joining a competitor, but judges review each case carefully. Utah courts require proof that the restriction is valid, narrowly written, and that real business harm would occur without enforcement.
9. Do Non-Competes Apply to Contractors or Gig Workers?
Not always. Utah law excludes certain independent contractors — including 1099 healthcare professionals such as locum physicians — from non-compete enforcement. If you’re paid as a contractor, verify whether Utah’s Post-Employment Restrictions Act applies to your situation.
10. Can You Negotiate or Refuse a Non-Compete?
Yes. Utah employees can negotiate the length, area, or type of work covered. If a non-compete feels too restrictive, ask for written changes or seek legal review before signing. You’re not required to accept terms that limit your ability to earn a living unfairly.
Video: Utah Non-Compete Law Explained
Video: How Utah Courts Evaluate Non-Compete Cases
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Final Word
Utah’s non-compete laws strike a balance between protecting business investments and preserving an employee’s right to work freely. The best agreements are narrow, clear, and fair — designed to prevent unfair competition, not end a career. If you’re an employer, think precision over power; if you’re an employee, know that signing doesn’t mean surrendering your rights.
Final Word: A non-compete should never be a lifelong barrier to opportunity. Before you sign, enforce, or challenge one, take time to understand Utah’s one-year limit and fairness standards. A brief consultation with a Utah employment attorney can save both sides years of stress, lawsuits, and lost income.
This article provides legal information, not legal advice. For guidance on your specific situation, consult a licensed Utah employment attorney. For more plain-English legal insights, visit Utah Law Explained or connect with trusted counsel like Gibb Law Firm.