Quick Facts — Noncompete Agreement Lawyers (Utah)

Is a Non-Compete Agreement Enforceable in Utah?

Yes. Non-compete agreements are enforceable in Utah; however, these restrictive covenants are subject to limitations and regulations. To be enforceable, a Utah non-compete agreement must be reasonable. The Supreme Court of Utah has established four rules to test reasonability:

  1. Consideration. All non-compete agreements must be supported by adequate consideration.
  2. Good faith negotiations. The contract must be entered into in good faith.
  3. Necessary to protect business interests. The non-compete must be necessary to protect the employer’s legitimate business interests.
  4. Time and area. The agreement must designate a specific duration and geographic area.

According to the Utah Supreme Court, protectable business interests are trade secrets, the goodwill of the business, or extraordinary investment in the training of the employee.

How Long Does a Utah Non-Compete Agreement Last?

Utah statutes have placed a maximum duration on non-compete agreements of one year. The one-year term will begin once the employment relationship between the parties is terminated.

How Do You Get Around a Non-Compete Agreement in Utah?

To get around a non-compete agreement or to terminate the contract, employees will need to prove that the agreement is unreasonable under the regulations in state statutes. The employee can argue that the duration or geographic boundary set by the contract is unreasonable or that the non-compete does not protect legitimate business interests.

What Voids a Utah Non-Compete Agreement?

A Utah non-compete agreement will be void if it was not entered into voluntarily. Like all contracts, both parties must enter into a non-compete agreement under their own free will. If an employee was threatened or coerced into signing a non-compete, the entire contract will be void.

Furthermore, the contract must be entered into in good faith. This means that neither party can deceive the other party or entice the other party into signing the contract under false pretenses. Any proof of fraud will void the non-compete agreement.

Frequently Asked Questions

How do I hire a lawyer to draft a noncompete agreement in Utah?
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Tiffany S. on ContractsCounsel
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Tiffany S.

Attorney
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Washington, Utah
10 Yrs Experience
Licensed in UT NM
J. Reuben Clark Law School

Tiffany received her Juris Doctorate from the J. Reuben Clark Law School, Magna Cum Laude. She is admitted to the Utah State Bar and the New Mexico State Bar. She practices in the areas of real estate, general business, business formation, employment agreements, and civil litigation.

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Jared S.

Attorney
Free Consultation
Utah
20 Yrs Experience
Licensed in UT ID
Gonzaga School of Law

I am a business-focused attorney. My practice covers all aspects of business law - from entity formation and contracts to real estate transactions and employment matters. I review, negotiation, draft and analyze contracts including: business asset purchase agreements, non-disclosure/confidentiality agreements, commercial leases, cease-desist letters, payment demand letters, construction contracts, consulting agreements and many more. I also guide clients through estate planning to protect both their business and personal interests.

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Richard M.

Principal Attorney
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Salt Lake City, UT
20 Yrs Experience
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Richard "Rick" Mortensen has practiced law continuously in Utah since 2006. For most of that time, he worked in-house, including stints at two international mining companies, two direct selling/MLM companies, a large ecommerce retailer, and an accounting/fintech firm. He also has extensive litigation experience, having represented plaintiffs and defendants in every stage of litigation, including jury trials and appeals. His current role is as a fractional general counsel for businesses of all sizes.

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Jared F.

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Salt Lake City, UT
22 Yrs Experience
Licensed in UT NV
Harvard Law School

Jared Fields is an experienced business lawyer and litigator with experience in diverse industries and practice areas. Prior to launching his own practice, he served as the chief legal officer for a group of privately-owned companies, including a real estate development group, construction companies, multiple franchisees, and a professional soccer team. As a result, he is experienced in real estate transactions, commercial agreements of varying degrees of sophistication, employment matters, and litigation, as well as general business legal advice. He was also an in-house attorney for a renewable energy company, where he was responsible for litigation, investigations, enforcement actions, and related securities filing disclosures. Mr. Fields also spent many years as a litigator in private practice, representing clients in matters ranging from securities litigation, to breach of contract, to cases involving real estate and financial services. Mr. Fields has particular experience in legal matters that may involve complex financial, accounting, valuation, and other quantitative issues.

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Darren W.

Attorney
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South Jordan, Utah
22 Yrs Experience
Licensed in UT AZ, CO, WY
J. Reuben Clark, BYU

My main focus is estate planning and business transactions, but I have had many practice areas throughout my career, including criminal defense and prosecution, civil litigation from neighborhood squabbles to corporate contentions. I have also worked in bankruptcy, family law, collections, employment law, and personal injury. I stand ready to assist in any area to which I feel I can be of service, but will not try to fake it if I do not know the area of law I am being asked to serve in.

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I am a solo practitioner that runs my own legal practice. I am currently licensed in 16 states and I'm working to expand that reach.

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Business and Transaction focused attorney with 25+ years of experience in matters ranging from real estate and land use, energy and oil & gas, business acquisitions, mergers & acquisitions, contracts and capital financing.

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Employee Rights

Noncompete Agreement

California

Asked on Sep 12, 2022

i work for a employer from illinois ,however i am in california. My contract has non compete clause. will that be enforceable

My employer has placed me in a position thru another vendor. My employer contract with that vendor is ending. So vendor contacted me. However I am in contract with my employer for 1 year contract.

Christopher M.

Answered Sep 13, 2022

Short answer: Probably no, non-compete and non-solicitation clauses are not usually enforceable on an employee in California. Long Answer: Regardless of the choice of law provision in your contract, if an enforcement action is brought against you in California, the California courts will dismiss it as it goes against the "public policy of the state" unless your employer can make a really compelling case. Most states respect the stated public policy of other states when deciding matters against their citizens, so even if the case was brought in another states courts your soon to be former employer would probably be powerless to get a judgement enforcing your non-compete.

Read 1 attorney answer>

Employment

Noncompete Agreement

Missouri

Asked on Dec 12, 2023

Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?

I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?

Matthew S.

Answered Dec 16, 2023

No, this at worst is a civil matter and not a criminal matter. F

Read 1 attorney answer>

Contracts

Noncompete Agreement

Florida

Asked on Jul 30, 2023

Noncompete agreement and severance packages?

I recently left my job of 5 years, where I had signed a non-compete agreement. I am now negotiating a severance package with my former employer and am unsure of what my rights and obligations are regarding the non-compete agreement. I am seeking clarification on how the non-compete agreement should be handled in relation to the terms of my severance package.

Diane D.

Answered Sep 1, 2023

To be able to answer this question, I would need to see the agreements. No one can answer your question without seeing the agreements.

Read 1 attorney answer>

Business Contracts

Noncompete Agreement

Florida

Asked on May 21, 2023

Noncompete agreement for consultants?

I am a consultant who is looking to take on a new client, but the client requires me to sign a Noncompete Agreement. I want to make sure that I am not signing away my rights, and that the agreement is fair and reasonable. I am also interested in understanding how this agreement would affect my ability to work with other clients.

Venus C.

Answered May 30, 2023

Hello. I appreciate your concerns about signing a Noncompete Agreement. It's essential to protect your rights and ensure the agreement is fair and reasonable given that a noncompete typically restricts competing activities during or after the term of engagement. Without knowing more about the business relationship and reviewing the actual terms, whether the non-compete is fair, reasonable, or even enforceable remains an open-ended question. Bearing this in mind, if the noncompete is preventing you from taking on other clients during or after the end of your relationship (or both), the scope of this restriction must be reasonable in terms of time, geographic area, and the specific activities it seeks to prevent. For example, does the noncompete specify the types of clients, industries, or geographic areas that are off-limits? What is the duration of the noncompete? If the client breaches your main agreement, will that render your noncompete void and unenforceable? These are just a few general questions that require a thorough review and analysis against Florida non-compete laws. Overall, the ultimate goal is to carefully review the terms to understand how they might impact your ability to take on new clients. If you don’t understand or are unsure about the contractual terms and their legal implications, it's highly recommended you consult with an attorney who can review the noncompete and provide you with personalized legal advice before you sign.

Read 1 attorney answer>

Employee Rights

Noncompete Agreement

Florida

Asked on Jun 29, 2023

Noncompete agreement geographic scope?

I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.

Daniel D.

Answered Jul 25, 2023

The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.

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Did a good job explaining the documents to me, and the implications that the various terms and conditions imposed on me.

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