Utah Employee Noncompete (Noncompetition) Agreement
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FAQ
This law states that a non-compete agreement may be enforced if it is part of a reasonable severance agreement mutually and freely agreed upon at or after the time of termination. The non-compete agreement must also meet the common law requirements imposed by Utah courts in order to be enforceable.
- The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship.
If the court finds the non-compete too restricting, it won't hold up. Too broad or unnecessary: If the employer has created unnecessary restrictions on its employees, the court will not uphold the non-competition clauses.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
This law states that a non-compete agreement may be enforced if it is part of a reasonable severance agreement mutually and freely agreed upon at or after the time of termination. The non-compete agreement must also meet the common law requirements imposed by Utah courts in order to be enforceable.
California - Non-compete clauses are not enforceable under California law. However, LegalNature's non-compete agreement may still be used to prohibit the employee from soliciting customers and other employees away from the employer.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Under current law, non-compete agreements in Utah must be no longer than one year, limited to a reasonable geographic area, and intended to protect only legitimate business interests of the employer.
