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Yes. However, the restriction is more likely to be upheld if the clause only restricts the employee from dealing with customers/clients with whom the employee had contact with during a specified period (often 12 months) before termination. The restriction should also be limited in time.
Under the most recently amended section 34-51-201 of the Utah Code, an employer and an employee may not enter into a post-employment restrictive covenant for a period of more than one year from the day on which the employee is no longer employed by the employer. This law applies to non-compete agreements entered into
Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding.
Breach of restrictive covenantSeek damages: from the employee for breach of the restrictions; Sue the new employer for inducing the employee to breach their contract.
Typically, courts tend to enforce restrictions of between 6 and 12 months, depending upon the seniority of the employee concerned and their access to confidential information and clients. This is subject, of course, to the covenants being reasonable and necessary to protect a legitimate business interest.
How legally binding are restrictive covenants? Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding. If restrictive covenants are introduced to existing employees, employer's need to provide consideration.
Certain restrictive covenants will be enforceable, if you are able to prove that they are: reasonable. necessary to protect legitimate business interests; and. of a duration no longer than is necessary to protect those interests.
If there is a restrictive covenant on your property you may be able to remove it. The first step would be to negotiate with the original developer or landowner to enter into a formal agreement to remove the covenants from the title.
Non-competes are enforceable in Utah if the employer terminates the employment relationship (Rose Park Pharmacy, 237 P.
Breaching a restrictive covenant leaves you open to potential legal action from the other party, if they wish to enforce the covenant. If you are taken to court and the other party is successful, you might have to undo any work carried out and may face a fine or have to pay damages, as well as legal fees.