Utah businesses often want to protect client relationships, proprietary information, and employee investment when someone leaves the company. But overly broad non-compete and non-solicit clauses can backfire—especially in Utah, where state law limits these agreements.
If you’re running a small business in Utah, here’s what you need to know to use restrictive covenants legally and effectively.
Are Non-Competes Legal in Utah?
Yes, but they’re limited. Utah’s Post-Employment Restrictions Act (Utah Code § 34-51-101 et seq.) allows non-compete agreements only under specific conditions:
- The agreement must be in writing;
- It must be part of an employment agreement or separate document at the time of hire;
- It may not last more than one year after the employee’s termination;
- It must be narrowly tailored to protect legitimate business interests (like trade secrets or client goodwill).
If you require a non-compete that doesn’t meet these conditions, it may be void—and you could be liable for the employee’s attorney fees if they challenge it.
What About Non-Solicits?
Non-solicitation clauses are generally more enforceable than non-competes. These clauses prohibit a former employee from:
- Soliciting your clients or customers;
- Poaching your remaining employees;
- Using confidential business contacts after leaving.
Utah courts typically uphold reasonable non-solicit clauses—especially if they protect legitimate business interests and are time-limited.
Key Best Practices for Utah Employers
To ensure your agreements are enforceable, follow these tips:
- Be Specific: Vague or overly broad language is the fastest way to get your clause tossed.
- Limit the Duration and Scope: The narrower the clause, the more likely a court will enforce it.
- Update Contracts Regularly: Business roles and laws change; make sure your agreements do too.
- Use Separate Agreements for Independent Contractors: Don’t copy-paste employee language.
- Don’t Rely on Boilerplate: What works in other states may not fly in Utah.
What Happens If You Get It Wrong?
A poorly drafted or overreaching non-compete could lead to litigation, penalties, or even reputational damage. In some cases, a court might invalidate the entire agreement.
To reduce risk and improve enforceability, work with a Utah business attorney who understands how local courts apply these laws.
For related topics, check out:
👉 Hiring Your First Employee in Utah? Legal Steps You Can’t Skip
👉 What Should Be in Your Utah Business Contracts (and What Shouldn’t)
Need Help Drafting Enforceable Non-Compete Agreements in Utah?
Duckworth Legal Group works with Utah business owners to draft enforceable, customized agreements that protect their investments and stand up in court. Call 801-882-7444 or email us for help today.