Utah Employment & Business Law
Non-Compete Agreement
Lawyer Utah
Utah's 2016 Post-Employment Restrictions Act significantly changed non-compete law. Whether you're an employee facing a restrictive agreement or an employer protecting your business, Stavros Law P.C. provides experienced counsel on both sides.
Utah non-compete law
What Utah's Post-Employment Restrictions Act means for you
The Utah Post-Employment Restrictions Act (Utah Code § 34-51-101 et seq.), effective May 10, 2016, is one of the most significant changes to Utah employment law in decades. It limits non-compete agreements for most employees to a maximum duration of one year.
The Act also created a fee-shifting provision: if an employer seeks to enforce a non-compete and a court finds the agreement is not enforceable, the employer may be required to pay the employee's attorney's fees and costs. This provision significantly changes the calculus for employers considering enforcement.
Even within the one-year cap, courts still evaluate whether a non-compete: (1) is supported by adequate consideration; (2) protects a legitimate business interest (trade secrets, confidential information, customer relationships); and (3) is reasonable in scope — geographic area and restricted activities.
Non-solicitation agreements (prohibiting solicitation of customers or employees) are subject to the same Act but are generally easier to enforce because they are narrower. Confidentiality agreements protecting trade secrets are not subject to the one-year cap and remain broadly enforceable.
Employee & employer representation
We represent both sides of non-compete disputes
For employees
- Reviewing non-compete agreements before signing
- Evaluating enforceability of existing agreements
- Defending against employer enforcement actions
- Negotiating release or modification of restrictions
- Advising on new job opportunities and risk
For employers
- Drafting enforceable non-compete and non-solicitation agreements
- Enforcing agreements against departing employees
- Seeking injunctive relief to prevent competitive harm
- Trade secret protection alongside non-compete enforcement
- Advising on compliance with Utah's Post-Employment Restrictions Act
Non-compete & trade secrets
The overlap between non-competes and trade secret protection
Non-compete agreements and trade secret protections are closely related but legally distinct. An employer may pursue both simultaneously — seeking to enforce a non-compete while also asserting trade secret misappropriation claims under the Utah Uniform Trade Secrets Act (Utah Code § 13-24-1 et seq.).
Critically, even if a non-compete is unenforceable (e.g., because it exceeds one year), an employer can still obtain injunctive relief to prevent a former employee from using or disclosing confidential business information. Conversely, an employee who successfully defeats a non-compete may still be prohibited from using trade secrets in their new role.
Stavros Law P.C. handles both sides of these disputes and understands how non-compete and trade secret claims interact in Utah litigation.
Common questions
Non-compete agreement FAQ
Are non-compete agreements enforceable in Utah?
Yes, with significant limitations. Utah's Post-Employment Restrictions Act (Utah Code § 34-51-101) limits non-competes to one year for most employees. Courts also require adequate consideration, a legitimate business interest, and reasonable scope.
What changed with Utah's 2016 non-compete law?
The Post-Employment Restrictions Act capped non-compete duration at one year and created fee-shifting: if an employer loses an enforcement action, it may owe the employee's attorney's fees. Applies to agreements entered on or after May 10, 2016.
Can my employer enforce a non-compete if I was laid off?
Potentially, but courts consider the circumstances of separation. Being laid off without cause may affect the adequacy of consideration and courts' willingness to enforce restrictions. An attorney can evaluate your specific situation.
What is the difference between a non-compete and a non-solicitation agreement?
A non-compete prohibits working for a competitor. A non-solicitation prohibits soliciting the employer's customers or employees. Non-solicitation agreements are generally easier to enforce because they are narrower in scope.
How does a non-compete relate to trade secret protection?
Even if a non-compete is unenforceable, an employer may still prevent use of confidential information under Utah's Uniform Trade Secrets Act. Conversely, an employee subject to an overbroad non-compete may still compete as long as they don't misappropriate trade secrets.
What should I do if my employer threatens to enforce a non-compete?
Do not assume the agreement is enforceable. Many non-competes are overbroad or don't comply with Utah's Post-Employment Restrictions Act. Consult an attorney before making decisions about your next job.
Employee & employer counsel
Non-compete issue in Utah?
Whether you're an employee facing a restrictive agreement or an employer protecting your business, Stavros Law P.C. provides experienced, trial-ready counsel.
Related: Employee Rights · For Employers · Business Litigation
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