Frequently, an employer will ask for an employee to sign a Utah non-compete agreement before they start working there. Employers can use a non-compete agreement in Utah to prevent current and former employees from sharing confidential information with competitors of the business. In addition, a non-compete agreement in Utah can be used to prevent current and former employees from working for one of their competitors during and after their term of employment. Take a look at what information is usually included in a Utah non-compete agreement.
Is a Non-Compete 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 not be able to work for competitors within a specific geographic area for a certain number of years. [1]
What’s Protected?
There are a handful of types of business information that can be protected by a Utah non-compete agreement. For example, if the business has made an extraordinary investment in training or education, that information could be protected. Other trade secrets and goodwill shown by the company can also be protected by a non-compete agreement. If the information is essential to the interests of the company, it can be protected using a non-compete agreement in Utah.
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 has to be legitimately used to protect the interests of the employer, and it cannot be overly harsh in terms of scope or duration.
In addition, broadcasters cannot be subjected to non-compete agreements in Utah.
- 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
Non-Compete Agreement Utah Limitations
There are some limitations placed on non-compete agreements and Utah. Some of the limitations to keep in mind include:
Limitations on time
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.
Non-compete agreement Utah geographical limitations
In Utah, there are no specific geographic limitations that have to be met for a non-compete agreement to be put in place; however, these geographic limitations have to be justified. If the non-compete agreement is challenged in court, the employee has to clearly specify why these geographic limitations are related to the interests of the company. If they cannot do so, the agreement could be thrown out.
Utah Non-Compete Agreement 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:
Non-Compete Agreement
