Are Non-Compete Agreements Enforceable in Utah?
Non-compete agreements can be an important issue for Utah businesses and employees. These agreements generally seek to limit certain competitive activities after an employment relationship ends.
However, whether a non-compete is enforceable depends on the agreement, when it was entered into, the parties involved, and applicable Utah law.
Utah's non-compete rules changed in 2026, making it particularly important to evaluate current law rather than relying
on older information.
What Is a Non-Compete Agreement?
A non-compete agreement generally restricts an employee from competing with an employer after employment ends.
These agreements are different from:
Nondisclosure agreements
Confidentiality agreements
Nonsolicitation agreements
Training repayment agreements
Each type of restriction may be governed differently.
Utah's Current Rules
Utah law generally limits the duration of certain employee non-compete agreements. The 2026 amendments also created additional restrictions involving certain employees and agreements entered into on or after May 6, 2026.
There are also statutory exceptions, including certain agreements connected to the sale of a business and some severance arrangements.
Because the rules can depend on the employee, agreement, timing, and circumstances, businesses should have specific agreements reviewed rather than assuming that every non-compete is enforceable.
What Should Businesses Do?
Businesses should carefully review restrictive covenant agreements and consider whether they comply with current Utah requirements.
Contact Aspen Legal Services
If you have questions about a Utah non-compete agreement, Aspen Legal Services can review the circumstances and help you understand your legal options.
Contact Aspen Legal Services today to schedule a consultation.
This article is general information and should be reviewed by qualified Utah counsel before being relied upon for a specific agreement.
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