A Utah Non-Compete Agreement is a legal document that some employers require their employees to sign before starting their job. The agreement is designed to protect the company’s confidential information and restrict the employee from working for any of its competitors during and after their employment period.
This is a common practice in Utah and is intended to prevent current or former employees from divulging sensitive information to competing businesses. Employees need to read and fully understand the terms of the agreement before signing it, as it can have significant implications for their future job opportunities.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – Yes.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – Yes.
Legally Enforceable in Utah?
Yes, you can legally enforce a non-compete agreement in Utah. Companies will use a non-compete agreement to protect their confidential information and business interests. Under the terms of a non-compete agreement, employees might be unable to work for competitors within a specific geographic area for a certain number of years as per § 34-51-201.
Reasonable Use and Exemptions
Utah non-compete agreements need to be used reasonably to be enforceable. For example, they should be drawn carefully so as not to place an unduly harsh restriction on the ability of the employee to find employment. The agreement must be legitimately used to protect the employer’s interests, and it cannot be overly harsh regarding scope or duration.
In addition, broadcasters cannot be subjected to non-compete agreements in Utah.
Time Limitations
In Utah, there is no limit to the duration of a non-compete during employment. It must be reasonable in its length and not unnecessarily long or harsh.
Non-compete agreements entered into after employment has concluded cannot last longer than one year. In the event of a breach of contract, the impacted party has up to 6 years to bring a lawsuit and pursue damages.
Geographical Limitations
In Utah, no specific geographic limitations must be met for a non-compete agreement to be put in place; however, these limitations must be justified.
If the non-compete agreement is challenged in court, the employee has to specify why these geographic limitations are related to the company’s interests. If they cannot do so, the agreement could be thrown out.
Sample
If you are working on a non-compete agreement in Utah, take a look at this Utah non-compete agreement template, which is available in Word and PDF:
