Except as provided in Subsection (2) and in addition to any requirements imposed under common law, for a non-compete agreement entered into on or after May 10, 2016, an employer and an employee may not enter into a non-compete agreement for a period of more than one year from the day on which the employee is no longer employed by the employer.
(b)
On or after May 6, 2026, a person and a healthcare worker may not enter into a healthcare non-compete agreement.
(c)
A non-compete agreement that violates this Subsection (1) is void.
(2)
(a)
Subject to Subsection (2)(b), a non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:
(i)
the broadcasting employee is an exempt broadcasting employee;
(ii)
the non-compete agreement is part of a written employment contract of reasonable duration, based on industry standards, the position, the broadcasting employee's experience, geography, and the parties' unique circumstances; and
(iii)
(A)
the broadcasting company terminates the broadcasting employee for cause; or
(B)
the broadcasting employee breaches the employment contract in a manner that results in the broadcasting employee no longer being employed by the broadcasting company.
(b)
A non-compete agreement described in Subsection (2)(a) is enforceable for no longer than the earlier of:
(i)
one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or
(ii)
the day on which the original term of the employment contract containing the non-compete agreement ends.
(c)
A non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this Subsection (2) is void.
(3)
(a)
Subject to Subsection (3)(b), on or after May 6, 2026, a person and a veterinarian may not enter into a veterinarian non-compete agreement.
(b)
Subsection (3)(a) does not apply if the veterinarian has at least a 5% ownership interest in the person's business.
(c)
A veterinarian non-compete agreement that violates this Subsection (3) is void.
(4)
If a provision in a veterinarian non-compete agreement entered into on or after May 6, 2026, requires that the parties to a dispute arising under the veterinarian non-compete agreement resolve the dispute in a forum outside of this state, the provision:
(a)
is void and unenforceable; and
(b)
is considered against the public policy of this state.
(5)
Nothing in this section affects an agreement that is not a:
Section 34-51-201 ("Non-compete agreements.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
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