What Happens When an Employee Violates a Non-Compete Agreement?
A business may become concerned when a former employee appears to be competing in a way that the employer believes violates a non-compete agreement.
However, the existence of an agreement does not automatically mean that every restriction is enforceable.
Utah's current law places specific limitations on non-compete agreements, including additional restrictions applicable to certain agreements entered into on or after May 6, 2026.
Review the Agreement First
Before taking action, a business should review the actual language of the agreement.
Important questions may include:
When was it signed?
Who signed it?
What activities does it restrict?
How long does the restriction last?
Does it apply to the employee's circumstances?
Does current Utah law affect enforceability?
Preserve Evidence
If a business believes a violation occurred, preserve relevant records.
These might include:
Employment agreements
Emails
Company records
Client communications
Evidence of competing activity
Avoid deleting or altering potentially relevant information.
Consider the Business Impact
A potential violation may affect:
Customer relationships
Confidential information
Business opportunities
Revenue
Trade relationships
The business should evaluate the actual impact before deciding how to proceed.
Can a Business Take Legal Action?
Potentially, depending on the agreement and applicable law.
Legal options may include negotiation, enforcement proceedings, or litigation when appropriate.
Contact Aspen Legal Services
If you believe a former employee has violated a non-compete agreement, Aspen Legal Services can help review the agreement and circumstances.
Contact us today to discuss your legal options.
Because Utah's non-compete laws changed in 2026, this article should not be treated as a determination that a particular agreement is enforceable.
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