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?
How much does it cost to hire a lawyer to review a noncompete agreement in Utah?

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Florida NDA and NCA Review
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Tiffany S. on ContractsCounsel
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Tiffany S.

Attorney
Free Consultation
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. on ContractsCounsel
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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.

Richard M. on ContractsCounsel
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Richard M.

Principal Attorney
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Salt Lake City, UT
20 Yrs Experience
Licensed in UT
Drake University Law School

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. on ContractsCounsel
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Jared F.

Managing Attorney
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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
Free Consultation
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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Alexander C.

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Tampa, Florida
6 Yrs Experience
Licensed in UT CT, MD, MO, NY
The George Washington University Law School

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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Bryan F.

Partner
Salt Lake City, Utah
26 Yrs Experience
Licensed in UT
J. Reuben Clark Law School, Brigham Young University

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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Lawyer Reviews for Utah Noncompete Agreement Projects

Legal Advice Needed for Non-Compete Agreement in Minnesota

4.7

"First draft that was delivered didn’t meet expectations. Initially offered to do more work if I paid more. Did agree to take a more comprehensive look and provided services. Very prompt"

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4.7

"Great concise and helped me review documents"

Florida
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5.0

"Great to work with, thorough, patient, and excellent explanation and detailed information."

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5.0

"Paul was stellar in every way. Highest recommendation possible; I will be continuing to partner with him. Thank you, Paul."

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Employment

Noncompete Agreement

New Jersey

Asked on Apr 15, 2021

Can I work for a competitor with my current noncompete?

I have ended my non competent consulting agreement with my current employee and I have an offer to work as an employer “not as consultant” with a competitor company to my privious employees so can I work as an employee without any problem? The consultant agreement says the following: Under any circumstances the consultant shall not engage directly or indirectly either as a principal agent , consultant,stock holder , partner or in any other capacity whatsoever have any other relationship with any business which compete with the company in USA.

Jane C.

Answered Apr 16, 2021

I suggest that you have an attorney review the entire agreement. It is hard to comment reading a paragraph taken out of context. From the limited facts you present, it seems that you cannot accept this job offer without violating the terms of the non-compete. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.

Read 2 attorney answers>

Employee Rights

Noncompete Agreement

New York

Asked on Dec 5, 2024

Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?

I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?

Damien B.

Answered Dec 6, 2024

Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.

Read 1 attorney answer>

Employer

Noncompete Agreement

Connecticut

Asked on Jul 13, 2023

Can a noncompete agreement be waived?

I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.

Thomas L.

Answered Jul 21, 2023

Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

Read 1 attorney answer>

Employer

Noncompete Agreement

Florida

Asked on Jul 6, 2023

How to draft a noncompete agreement?

I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.

Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

Read 1 attorney answer>

Contracts

Noncompete Agreement

Florida

Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

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Recent Project:
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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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