Utah Guide · Updated 2026
Utah Non-Compete Agreements
Utah has a specific statute on the books — the Post-Employment Restrictions Act — and it is unusually unforgiving of overbroad non-competes. (Note: there is no federal noncompete ban; the FTC rule was struck down and removed, so this is all state law.)
The one-year cap
For covenants entered on or after May 10, 2016, an employer and employee may not agree to a post-employment non-compete longer than one yearfrom the end of employment (Utah Code § 34-51-201). A non-conforming covenant is void— Utah courts have not clearly adopted "blue-penciling" to save an overbroad one.
Fee-shifting if you over-reach
Section 34-51-301 is the teeth: if an employer tries to enforce a post-employment restrictive covenant and it is found unenforceable, the employer is liable for the employee's arbitration costs, attorney fees, court costs, and actual damages. Suing on a bad non-compete can cost the employer, not the worker.
What the cap does NOT reach — and the 2026 healthcare ban
The one-year cap does not restrict non-solicitation, nondisclosure, or confidentiality provisions, and there are exceptions for reasonable severance and sale-of-business covenants (§ 34-51-202). A 2026 amendment adds limits on healthcare-worker non-competes (effective May 6, 2026) — confirm the current text before relying on it.
Practical takeaways
Keep any non-compete at or under one year, lean on non-solicit and confidentiality agreements (which the cap doesn't touch) for most roles, and think hard before suing to enforce — an unenforceable covenant can shift fees and damages to you. Have counsel review healthcare agreements given the 2026 change.
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