Utah non compete law restricts non competes by statute: utah’s Post-Employment Restrictions Act caps any non compete signed on or after May 10, 2016 at one year after the job ends — a longer one is void — and an employer that tries to enforce a covenant later found unenforceable owes the worker’s attorney fees, costs and actual damages. Within the one-year cap the common-law reasonableness test still applies.
This guide gives the exact Utah non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Utah Labor Commission, Wage Claim Unit or an attorney before you rely on it.
Utah Non Compete Law at a Glance
| Status | Restricted by statute |
| Income threshold | No earnings threshold |
| Statute | Utah Code 34-51-201 |
| Notice / consideration | No statutory notice rule |
| Carve-outs | Non solicitation, non disclosure and confidentiality agreements; a reasonable severance agreement freely made at or after termination; sale-of-business… |
| Overbroad terms | void if it exceeds one year (no blue pencil of the term); reasonableness test within the year; employer liable for the worker’s fees and damages if it loses (34-51-301) |
| In effect since | May 10, 2016 (HB 251); amended 2018, 2019 and 2020 |
In This Utah Non Compete Law Guide:
Is a Non Compete Enforceable Under Utah Non Compete Law?
Utah’s Post-Employment Restrictions Act caps any non compete signed on or after May 10, 2016 at one year after the job ends — a longer one is void — and an employer that tries to enforce a covenant later found unenforceable owes the worker’s attorney fees, costs and actual damages. Within the one-year cap the common-law reasonableness test still applies. The statute is Utah Code 34-51-201.
The carve-outs matter: non solicitation, non disclosure and confidentiality agreements; a reasonable severance agreement freely made at or after termination; sale-of-business covenants (all may run longer than a year); broadcasting employees have special limits (2020 SB 233).
Utah Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with Utah Labor Commission, Wage Claim Unit or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Restricted by statute |
| What the rule says | Utah’s Post-Employment Restrictions Act caps any non compete signed on or after May 10, 2016 at one year after the job ends — a longer one is void — and an employer that tries to enforce a covenant later found unenforceable owes the worker’s attorney fees, costs and actual damages. Within the one-year cap the common-law reasonableness test still applies. |
| Income threshold | No earnings threshold |
| Statute | Utah Code 34-51-201 |
| Carve-outs | Non solicitation, non disclosure and confidentiality agreements; a reasonable severance agreement freely made at or after termination; sale-of-business covenants (all may run longer than a year); broadcasting employees have special limits (2020 SB 233) |
| What a court does with an overbroad term | void if it exceeds one year (no blue pencil of the term); reasonableness test within the year; employer liable for the worker’s fees and damages if it loses (34-51-301) |
| In effect since | May 10, 2016 (HB 251); amended 2018, 2019 and 2020 |
The Reasonableness Test Under Utah Non Compete Law
Utah courts generally enforce a non compete only if it is supported by consideration, was negotiated in good faith, is needed to protect the employer’s goodwill, trade secrets or customer relationships, and is reasonable in time and area. Courts look at whether the restriction protects a real business interest, or only tries to stop ordinary competition from a former worker.
They also weigh how broad the banned work is and how much hardship it puts on the worker. A restriction that goes further than the employer’s legitimate interest may not be enforced.
Utah law generally limits post-employment non competes signed on or after May 10, 2016 to one year after the job ends, and longer restrictions are void. Within that limit, courts have more often upheld restrictions tied to the actual customers or market area the worker served than broad statewide or nationwide bans.
With an overbroad term the court will void if it exceeds one year (no blue pencil of the term); reasonableness test within the year; employer liable for the worker’s fees and damages if it loses (34-51-301).
Utah Non Compete Law If You Were Fired or Laid Off
Utah’s non compete statute generally does not make an exception based on whether you were fired, laid off or quit. Utah appellate courts have not clearly settled a separate rule for laid-off workers, though a court deciding whether to grant an injunction may consider the circumstances of the separation. Confirm how this applies to you with a Utah attorney.
What the Employer Must Give Under Utah Non Compete Law
Utah courts require a non compete to be supported by consideration, meaning the worker must get something of value in exchange. Utah appellate courts have not clearly settled whether continued at-will employment alone is enough for a current employee, so a raise, promotion, bonus or other new benefit generally makes the agreement stronger.
Non Solicit and Non Disclosure Agreements Under Utah Non Compete Law
Utah’s one-year statutory limit applies to non competes. It does not cover non solicitation, non disclosure or confidentiality agreements, which are judged separately and are often easier for employers to enforce because they restrict less of a worker’s ability to earn a living. Starting May 6, 2026, a healthcare worker cannot be barred from telling patients where they now work.
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If You Already Signed One: Utah Non Compete Law in Practice
Read the whole agreement and note the exact length, area and type of work it restricts, plus the date you signed it. Check whether it runs past one year or applies to your new role at all, and consider asking your former employer for a written release or a narrower waiver. Before you accept a competing offer, have a Utah employment attorney review the agreement.
An employer with a valid non compete may ask a Utah court for an injunction ordering the worker to stop the competing work, and may seek money damages and attorney fees if the contract provides for fees. Under Utah law, an employer that tries to enforce a non compete later found void may itself owe the worker’s costs, attorney fees and actual damages.
The Federal Rule and Utah Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Utah non compete law controls.
Other Utah Non Compete Law Rules to Know
Utah has a separate rule limiting non competes in the broadcasting industry, and as of May 6, 2026 it restricts non competes for licensed healthcare workers. The statutory limits do not apply to restrictions that are part of a reasonable severance agreement or the sale of a business.
An employer that tries to enforce a non compete found to be void can be ordered to pay the worker’s costs, fees and actual damages.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
Utah — the bottom line
- Utah non compete law is a statute with its own limits — the first thing to check is which side of the line your agreement falls on.
- Under Utah non compete law, an overbroad term is void if it exceeds one year (no blue pencil of the term); reasonableness test within the year; employer liable for the worker’s fees and damages if it loses (34-51-301) — the words of your own agreement decide more than the headline rule.
- Utah non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in Utah?
Sometimes. Utah’s Post-Employment Restrictions Act caps any non compete signed on or after May 10, 2016 at one year after the job ends — a longer one is void — and an employer that tries to enforce a covenant later found unenforceable owes the worker’s attorney fees, costs and actual damages. Within the one-year cap the common-law reasonableness test still applies.
Is there an income threshold under Utah non compete law?
No. Utah has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a Utah court do with an overbroad non compete?
Void if it exceeds one year (no blue pencil of the term); reasonableness test within the year; employer liable for the worker’s fees and damages if it loses (34-51-301).
Can my employer enforce a non compete in Utah after firing me?
Utah’s non compete statute generally does not make an exception based on whether you were fired, laid off or quit.
I signed a non compete in Utah and have a new offer — what should I do?
Read the whole agreement and note the exact length, area and type of work it restricts, plus the date you signed it. Check whether it runs past one year or applies to your new role at all, and consider asking your former employer for a written release or a narrower waiver.
Official Utah Sources & Resources
- Utah Labor Commission, Wage Claim Unit: https://laborcommission.utah.gov/divisions/utah-antidiscrimination-and-labor-division-uald/wage-claims/
- Utah non compete statute (Utah Code 34-51-201): https://le.utah.gov/xcode/Title34/Chapter51/34-51.html
- Verified source: https://le.utah.gov/~2016/bills/hbillenr/HB0251.htm
- Verified source: https://le.utah.gov/~2020/bills/sbillint/SB0233.htm
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- Utah bar lawyer referral: https://www.licensedlawyer.org/
This Utah non compete law guide was last verified against official Utah sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.