Occupation limits
Utah Non-Compete Law (2026): Enforceable with carve-outs
Utah's rule for most workers is short and unforgiving: a post-employment non-compete cannot run more than one year from the last day of work, and a longer one is void rather than trimmed to twelve months. Broadcasting is handled separately, with a covenant enforceable against an exempt broadcasting employee only where it sits inside a written contract of reasonable duration and the separation came from a for-cause termination or the employee's own material breach. Health care has now been pulled out of the framework entirely: since May 6, 2026 an employer cannot enter into a non-compete with a state-licensed healthcare worker at all.
The rule
How Utah treats non-compete agreements
The 2026 ban is not absolute at its edges. Healthcare non-competes remain permissible inside a reasonable severance agreement the parties reach at termination, and in connection with a sale of a business where the restricted individual receives value from the sale. Non-solicitation clauses generally survive; what HB 270 forbids is a clause that would prevent a healthcare worker from telling patients where they are now practicing. Because the change is prospective, a healthcare covenant signed before May 6, 2026 still runs under the old one-year rule. The linked code page reflects the 2025 code and therefore predates HB 270's amendments; the 2026 text is documented in the enrolled bill.
If you are an employer
Twelve months is the whole allowance and there is no judicial extension, so if you are enforcing a covenant that turns out to be void you are exposed to the worker's attorney fees, arbitration costs, court costs, and actual damages; healthcare and veterinary employers should stop using non-competes in new agreements altogether.
If you are a worker
Any Utah non-compete reaching past twelve months is void on its face, and if you hold a Utah healthcare license and signed on or after May 6, 2026, the restriction cannot be enforced at all.
| Classification | Flat one-year statutory ceiling with a 2026 health-care prohibition |
|---|---|
| Pay threshold | No pay threshold |
| Maximum term | One year from the last day of employment, for any covenant made on or after May 10, 2016. A longer covenant is void rather than shortened. Exempt broadcasting employees are subject to a variant rule that runs to the earlier of one year after separation or the end of the original contract term. |
| Notice or consideration | None. Utah imposes no advance-notice or waiting-period requirement. |
| Primary statute | Utah Code § 34-51-201 (one-year limit and broadcasting rule), Utah Code Title 34, Chapter 51 generally (Post-Employment Restrictions Act), as amended by 2025 S.B. 228 and 2026 H.B. 270 |
Detail
What has changed, and what is still moving
Legislation 2024–2026
Two enactments in consecutive sessions. SB 228 of 2025, signed March 26, 2025 and effective May 7, 2025, barred health care services platforms from requiring non-competes or restricting workers' use of competing platforms. HB 270 of 2026, signed by Governor Spencer Cox on March 24, 2026 and effective May 6, 2026, went much further, prohibiting healthcare non-compete agreements with state-licensed healthcare workers across more than thirty professions, restricting non-solicitation clauses that would stop a worker from telling patients where they have gone, banning non-solicitation agreements with veterinarians, and renaming 'post-employment restrictive covenant' to 'non-compete agreement' throughout the chapter. HB 270 applies prospectively only, so agreements predating May 6, 2026 are unaffected.
Bills to watch
No significant restrictive bills pending. HB 270 is enacted rather than pending.
Leading cases
System Concepts, Inc. v. Dixon, 669 P.2d 421 (Utah 1983), supplies the common-law reasonableness overlay that still operates inside the statutory year, asking whether the covenant is supported by consideration, made in good faith, and reasonable in its restrictions on the employee.
If you have one in hand
What can make a non-compete unenforceable in Utah
- Your occupation is carved out. Flat one-year statutory ceiling with a 2026 health-care prohibition
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Utah.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Utah non-compete questions
Are non-compete agreements enforceable in Utah?
Utah's rule for most workers is short and unforgiving: a post-employment non-compete cannot run more than one year from the last day of work, and a longer one is void rather than trimmed to twelve months. Broadcasting is handled separately, with a covenant enforceable against an exempt broadcasting employee only where it sits inside a written contract of reasonable duration and the separation came from a for-cause termination or the employee's own material breach. Health care has now been pulled out of the framework entirely: since May 6, 2026 an employer cannot enter into a non-compete with a state-licensed healthcare worker at all.
How long can a non-compete last in Utah?
One year from the last day of employment, for any covenant made on or after May 10, 2016. A longer covenant is void rather than shortened. Exempt broadcasting employees are subject to a variant rule that runs to the earlier of one year after separation or the end of the original contract term.
Is there a minimum salary for non-competes in Utah?
No. Utah sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Utah require?
None. Utah imposes no advance-notice or waiting-period requirement.
Sources
How this entry was checked
- Primary source. Utah Code § 34-51-201 (one-year limit and broadcasting rule), Utah Code Title 34, Chapter 51 generally (Post-Employment Restrictions Act), as amended by 2025 S.B. 228 and 2026 H.B. 270 — the statutory text itself.
- Secondary sources consulted. Utah Code § 34-51-201 (Justia, 2025 code), Utah Code § 34-51-201 (FindLaw), Utah Legislature enrolled copy of 2026 H.B. 270, Epstein Becker Green, 'Utah Bans Post-Employment Noncompetes for Healthcare Workers Effective May 6, 2026', Buchalter, 'Utah Bans Non-Competes for Healthcare Workers', Epstein Becker Green multistate healthcare restrictive-covenant survey (2025 S.B. 228).
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.