Utah Non-Compete Agreements: What Employers and Employees Need to Know

Roughly 30 million U.S. workers—about one in five—are currently bound by a non-compete, and nationally representative research finds 18% are under a non-compete right now while 38% have signed one at some point. 

In Utah, the rule is unusually clear: most post-employment non-competes cannot exceed 12 months after separation, and attempts to enforce an unlawful clause can trigger fee-shifting against the employer. For employers and employees in Utah, the takeaway is practical: keep restraints short, narrow, and tied to legitimate interests, and know when a platform arrangement can’t use a non-compete at all. 

The sections below distill the essentials for employers and for employees. If you need tailored drafting, review, or a defense plan, Utah top-rated corporate lawyers can deliver a fast, Utah-focused assessment.

Drafting, Hiring, and Enforcement Under Utah’s One-Year Cap For Employers

​​Utah caps most post-employment non-competes, so your playbook should focus on narrow, defensible restraints that truly protect client goodwill and confidential information. Use the checklist below to keep policies, onboarding, and agreements aligned with Utah Code and current Utah business law practice.

  • Know the ceiling. 

Utah’s Post-Employment Restrictions Act caps most employee non-competes at one year from separation. Agreements exceeding that term are generally void; courts may also shift attorney fees against employers that try to enforce illegal terms. Build your templates around 12 months or less.

  • Protect legitimate interests—don’t overreach. 

Even within 12 months, covenants must be no broader than reasonably necessary to protect legitimate business interests such as trade secrets, confidential information, customer goodwill, or substantial training investments. Utah decisions and treatises emphasize tailoring scope, geography, and covered roles to those interests.

  • Use alternatives that often work better. 

Pair a narrowly drawn non-compete with focused non-solicitation (customers and employees) and confidentiality provisions; these are frequently easier to enforce and can achieve most goals of business planning without risking voiding the restraint. Calibrate definitions (e.g., “prospective customer” look-back windows) and include clear, practical onboarding rules for new hires.

  • Mind the 2025 healthcare platform rule. 

If you operate or hire through an app that places healthcare workers on independent-contractor shifts, Utah now prohibits the platform from imposing non-competes. This is a targeted restriction; traditional employer-employee healthcare contracts remain governed by the one-year cap and reasonableness. Align your contractor agreements and vendor terms accordingly.

  • The FTC’s rule isn’t the law. 

The federal non-compete ban proposed in 2024 was enjoined and, in September 2025, the FTC voted to dismiss its appeal and accept vacatur. Utah employers should rely on state law, not the vacated federal rule, while still expecting case-by-case federal scrutiny of unfair methods of competition.

  • Policies and process matter. 

Align offers, letters, handbooks, exit interviews, and data-return checklists with the restrictive covenants you use. Consistency supports enforceability and reduces factual disputes if litigation arises.

  • Hiring from competitors.

Before onboarding, request and review any restrictive-covenant agreements, wall off trade secrets, and structure roles to avoid solicitation of the prior employer’s accounts. A business lawyer in Utah can stage a compliant transition and reduce injunction risk—especially important for starting a small business in Utah that is scaling quickly.

Reading, Negotiating, and Defending Options For Employees

If you’re weighing a new offer or planning a move, Utah’s 12-month cap and reasonableness test give you leverage to narrow overbroad terms and keep your career on track. Use the quick checks below to spot red flags, preserve evidence, and set up a clean transition with legal support from a seasoned corporate attorney in Utah.

  • Check the term first. 

If the clause restricts you for more than 12 months after you leave, Utah law generally treats it as void. Fee-shifting risk for employers can improve your leverage. If you face threats over an overlong clause, document everything and seek a quick assessment.

  • Assess scope and geography. 

Even within one year, Utah requires reasonable limits. Watch for vague industry definitions, nationwide territory without justification, and bans on roles that don’t implicate the former employer’s client goodwill or confidential information. Courts weigh whether the restraint imposes “no greater restraint” than necessary.

  • Non-solicit vs. non-compete. 

A narrow non-solicitation (no poaching named customers for 12 months) may be acceptable where a broad non-compete is not. Many disputes settle by converting a sweeping restraint into a focused non-solicit with guardrails (e.g., who counts as a “customer,” how far back the list goes). Utah authority recognizes legitimate interests but disfavors blanket bans.

  • Healthcare platform gigs. 

If you accept independent-contractor shifts through a healthcare platform, current Utah law bars that platform from requiring a non-compete. If a platform agreement includes one, raise the statute and keep copies of shift records and communications.

  • Out-of-state contracts and choice of law. 

If you signed in another state, Utah courts may still refuse to apply foreign law that conflicts with Utah’s business law policy on non-competes. Bring the agreement, offer letter, and any choice-of-law or forum clause to a corporate attorney in Utah for strategy.

  • Practical steps when changing jobs.
  • Collect documents (agreement, handbook, any bonus/repayment terms).
  • List restricted accounts you will avoid for the restricted period.
  • Return devices/data and keep proof.
  • Stay off confidential materials—no downloads or forwarding.
  • Ask for a limited waiver or role-based carve-out when appropriate.

Utah Business Lawyer Solutions for Non-Competes

Utah’s one-year cap and the 2025 health-care platform carve-out make enforceable non-competes narrow, time-limited, and tied to legitimate interests, while the vacated FTC rule means Utah law governs your strategy. Weber Law Group delivers precise drafting, fast reviews, and tailored enforcement or defense that protect growth and mobility under Utah standards—contact us today for a practical plan.