Utah Code-Title 34-Chapter 51-Part 3. Remedies

Section 34-51-102. Definitions

As used in this chapter:

(1) “Broadcasting employee” means an employee of a broadcasting company.

(2) “Broadcasting company” means a person engaged in the business of:

(a) distributing or transmitting electronic or electromagnetic signals to the general public using one or more of the following:

(i) television;

(ii) cable; or

(iii) radio; or

(b) preparing, developing, or creating one or more programs or messages for distribution or transmission by means described in Subsection (2)(a).

(3) “Exempt broadcasting employee” means a broadcasting employee who is compensated on a salary basis, as defined in 29 C.F.R. Sec. 541.602, at a rate equal to or greater than the greater of:

(a) $913 per week, or an equivalent amount if calculated for a period longer than one week; or

(b) the rate at which an employee qualifies as exempt under the Fair Labor Standards Act, 29 U.S.C. Sec. 213(a) on a salary basis as defined in 29 C.F.R. Part 541.

(4) "Healthcare non-compete agreement" means an agreement between a person and a healthcare worker within which the healthcare worker agrees that, after the day on which the healthcare worker no longer works for or with the person, the healthcare worker will not engage in a service that the healthcare worker may provide under the scope of the healthcare worker's license:

(a) for a restricted period of time; or

(b)within a specific geographic area.

(5)(a) "Healthcare worker" means an individual licensed and practicing as:

(i) an advanced practice registered nurse intern under Title 58, Chapter 31b, Nurse Practice Act;

(ii) an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
Act;

(iii) an advanced practice registered nurse - CRNA without prescriptive practice under Title 58, Chapter 31b, Nurse Practice Act;

(iv) an associate marriage and family therapist under Section 58-60-304;

(v) a behavioral health coach under Section 58-60-603;

(vi) a behavioral health technician under Section 58-60-603;

(vii) a certified dietitian as that term is defined in Section 58-49-2;

(viii) a certified psychology resident under Title 58, Chapter 60, Part 4, Clinical Mental Health Counselor Licensing Act;

(ix) a certified social worker under Title 58, Chapter 60, Part 2, Social Worker Licensing Act;

(x) a clinical mental health counselor under Title 58, Chapter 60, Part 4, Clinical Mental Health Counselor Licensing Act;

(xi) a clinical social worker under Title 58, Chapter 60, Part 2, Social Worker Licensing Act;

(xii) a dentist as that term is defined in Section 58-69-102;

(xiii) a genetic counselor as that term is defined in Section 58-75-102;

(xiv) a licensed assistant behavior analyst under Title 58, Chapter 61, Part 7, Behavior Analyst Licensing Act;

(xv) a licensed behavior analyst under Title 58, Chapter 61, Part 7, Behavior Analyst Licensing Act;

(xvi) a licensed massage therapist as that term is defined in Section 58-47b-102;

(xvii) a licensed practical nurse under Title 58, Chapter 31b, Nurse Practice Act;

(xviii) a marriage and family therapist under Section 58-60-304;

(xix) a medication aide certified as that term is defined in Section 58-31b-102;

(xx) a mental health therapist as that term is defined in Section 58-60-102;

(xxi) a naturopathic physician as that term is defined in Section 58-71-102;

(xxii) a nurse midwife as that term is defined in Section 58-44a-102;

(xxiii) an optometrist as that term is defined in Section 58-16a-102;

(xxiv) a physical therapist under Section 58-24b-302;

(xxv) a physician as that term is defined in Section 58-68-102;

(xxvi) a physician assistant as that term is defined in Section 58-70a-102;

(xxvii) a psychologist under Section 58-61-301;

(xxviii) a podiatric physician under Section 58-5a-301;

(xxix) a radiology practitioner as that term is defined in Section 58-54-102;

(xxx) a registered nurse under Title 58, Chapter 31b, Nurse Practice Act;

(xxxi) a respiratory care practitioner as that term is defined in Section 58-57-2;

(xxxii) a social service worker under Title 58, Chapter 60, Part 2, Social Worker Licensing Act; or

(xxxiii) a substance use disorder counselor under Title 58, Chapter 60, Part 5, Substance Use Disorder Counselor Act.

(b) "Healthcare worker" does not include an individual:

(i) who holds a license described in Subsection (5)(a)(i) through (xxxiii); and

(ii) whose employment or contractual agreement does not require or involve practicing under the scope of the individual's license.

(6)"Nonsolicitation agreement" means an agreement, between a person and an individual who works for or with the person, in which the individual agrees that on or after the day on which the individual no longer works for or with the person, the individual will not solicit the person's clients, customers, or employees.

(7)(a) "Non-compete agreement" means an agreement, written or oral, between an employer and employee under which the employee agrees that on or after the day on which the employer no longer employs the employee, the employee, either alone or as an employee of another person, will not compete with the employer in providing a product, process, or service that is similar to the employer's product, process, or service.

(b) "Non-compete agreement" does not include:

(i) a nonsolicitation agreement;

(ii) a nondisclosure agreement; or

(iii) a confidentiality agreement.

(8) “Sale of a business” means a transfer of the ownership by sale, acquisition, merger, or other method of the tangible or intangible assets of a business entity, or a division or segment of the business entity.

See https://le.utah.gov/xcode/Title34/Chapter51/34-51-S102.html?v=C34-51-S102_2018050820180508

Section 34-51-201. Post-employment restrictive covenants

(1)(a) Except as provided in Subsection (2) and in addition to any requirements imposed under common law, for a non-compete agreement entered into on or after May 10, 2016, an employer and an employee may not enter into a non-compete agreement for a period of more than one year from the day on which the employee is no longer employed by the employer. 

(b) On or after May 6, 2026, a person and a healthcare worker may not enter into a healthcare non-compete agreement.

(c) A non-compete agreement that violates this Subsection (1) is void.

(2)(a) Subject to Subsection (2)(b), a non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:

(i) the broadcasting employee is an exempt broadcasting employee;

(ii) the post-employment restrictive covenant is part of a written employment contract of reasonable duration, based on industry standards, the position, the broadcasting employee’s experience, geography, and the parties’ unique circumstances; and

(iii)(A) the broadcasting company terminates the broadcasting employee for cause; or

(B) the broadcasting employee breaches the employment contract in a manner that results in the broadcasting employee no longer being employed by the broadcasting company.

(b) A non-compete agreement described in Subsection (2)(a) is enforceable for no longer than the earlier of:

(i) one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or

(ii) the day on which the original term of the employment contract containing the non-compete agreement ends.

(c) A non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this Subsection (2) is void.

(3) Nothing in this section affects an agreement that is not a:

(a) non-compete agreement; or

(b) healthcare non-compete agreement.

See https://le.utah.gov/xcode/Title34/Chapter51/34-51-S201.html?v=C34-51-S201_2019051420190514

Section 34-51-202. Exceptions

(1) This chapter does not prohibit:

(a) a reasonable severance agreement mutually and freely agreed upon in good faith at or after the time of termination that includes a non-compete agreement or a healthcare non-compete agreement; or

(b) a non-compete agreement or a healthcare non-compete agreement related to or arising out of the sale of a business, if the individual subject to the non-compete agreement or healthcare non-compete agreement receives value related to the sale of the business.

See https://le.utah.gov/xcode/Title34/Chapter51/34-51-S202.html?v=C34-51-S202_2016051020160510

Section 34-51-203. Nonsolicitation agreements

(1) On or after May 6, 2026, a person and a healthcare worker may not enter into nonsolicitation agreement that prevents a healthcare worker from informing a patient of any of the following:

(a) the healthcare worker's current place of employment; or

(b) the healthcare worker's future place of employment.

(2) A nonsolicitation agreement that violates Subsection (1) is void.

Section 34-51-301. Award of arbitration costs, attorney fees and court costs, and damages

If an employer seeks to enforce a non-compete agreement or healthcare non-compete agreement through arbitration or by filing a civil action and it is determined that the non-compete agreement or healthcare non-compete agreement is unenforceable, the employer is liable for the employee’s:

(1) costs associated with arbitration;

(2) attorney fees and court costs; and

(3) actual damages.

See https://le.utah.gov/xcode/Title34/Chapter51/34-51-S301.html?v=C34-51-S301_2016051020160510