Non-Compete Agreement in Utah
State-specific overview · Employment Law
Utah enforces non-competes if they protect legitimate business interests and are reasonable in time, area, and line of business under Utah Code § 34-47-501.
How Utah treats Non-Compete Agreement
Utah Code § 34-47-501 provides that a non-compete agreement is enforceable if it is reasonable and protects legitimate business interests such as trade secrets, confidential business information, substantial relationships with prospective or existing customers, or goodwill. The restriction must be reasonable in duration, geographic area, and line of business. Courts will not enforce agreements that are unreasonable or broader than necessary to protect the employer's legitimate interests. Utah also recognizes non-solicitation and confidentiality agreements as separate enforceable restrictions.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Utah.