Utah non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

health care workers, veterinarians, broadcast employees

Statutes and official texts quoted

Utah Code § 34-51-201(1)(a); Utah Code § 34-51-201(1)(c); Utah Code § 34-51-201(1)(b); Utah Code § 34-51-201(3); Utah Code § 34-51-201(2); Utah Code § 34-51-202(1); Utah Code § 34-51-203; Utah Code § 34-51-201(4); Utah Code § 34-51-301; Utah Code § 34-51-201 (history note)

Is a non-compete allowed?

A non-compete agreement that violates the one-year limit or the healthcare worker rule is void.

“A non-compete agreement that violates this Subsection (1) is void.”
Utah Code § 34-51-201(1)(c)

Health care and other professions

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

“On or after May 6, 2026, a person and a healthcare worker may not enter into a healthcare non-compete agreement.”
Utah Code § 34-51-201(1)(b)

On or after May 6, 2026, a person and a veterinarian may not enter into a veterinarian non-compete agreement, unless the veterinarian has at least a 5% ownership interest in the business.

“Subject to Subsection (3)(b), on or after May 6, 2026, a person and a veterinarian may not enter into a veterinarian non-compete agreement. (b) Subsection (3)(a) does not apply if the veterinarian has at least a 5% ownership interest in the person's business.”
Utah Code § 34-51-201(3)

A broadcasting employee non-compete is valid only if the employee is an exempt broadcasting employee, the non-compete is part of a written contract of reasonable duration, and the employee is terminated for cause or breaches the contract; otherwise it is void.

“A non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this Subsection (2) is void.”
Utah Code § 34-51-201(2)

On or after May 6, 2026, a nonsolicitation agreement may not prevent a healthcare worker from telling a patient where the worker currently works or will work; a violating agreement is void.

“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:”
Utah Code § 34-51-203

Exceptions

The chapter does not prohibit a reasonable severance agreement made in good faith at or after termination, or a non-compete arising from the sale of a business where the restricted individual receives value from the sale.

“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.”
Utah Code § 34-51-202(1)

Limits on length and area

For non-compete agreements entered into on or after May 10, 2016, an employer and employee may not agree to a non-compete lasting more than one year after employment ends (common-law requirements also still apply).

“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.”
Utah Code § 34-51-201(1)(a)

If it is challenged

If an employer seeks to enforce a non-compete (or covered nondisclosure or nonsolicitation agreement) in arbitration or court and it is found unenforceable, the employer is liable for the employee's arbitration costs, attorney fees and court costs, and actual damages.

“it is determined that the non-compete agreement, healthcare non-compete agreement, nondisclosure clause, or nonsolicitation 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.”
Utah Code § 34-51-301

Which state’s law and court

In a veterinarian non-compete entered into on or after May 6, 2026, a provision requiring disputes to be resolved outside Utah is void and unenforceable.

“requires that the parties to a dispute arising under the veterinarian non-compete agreement resolve the dispute in a forum outside of this state, the provision: (a) is void and unenforceable; and”
Utah Code § 34-51-201(4)

When the rules took effect

Section 34-51-201 was last amended by Chapter 341 of the 2026 General Session; its healthcare worker and veterinarian rules apply to agreements on or after May 6, 2026.

“Amended by Chapter 341, 2026 General Session”
Utah Code § 34-51-201 (history note)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Utah rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Utah?

A non-compete agreement that violates the one-year limit or the healthcare worker rule is void. (Utah Code § 34-51-201(1)(c)).

Does Utah have special non-compete rules for health care workers or other professions?

On or after May 6, 2026, a person and a licensed healthcare worker may not enter into a healthcare non-compete agreement. (Utah Code § 34-51-201(1)(b)).