Utah takes a targeted approach to non-compete reform — setting clear limits on duration and expanding protections for healthcare workers while maintaining a reasonableness standard for other aspects of enforcement.
Utah's 1-Year Maximum Duration Cap
Utah law caps non-compete agreements at a maximum of one year from the date employment ends. Any non-compete with a duration exceeding one year is unenforceable to the extent it exceeds that limit — a court will not enforce the agreement beyond the one-year maximum.
✅ If your non-compete has a duration longer than one year — whether 18 months, 2 years, or longer — it cannot be enforced beyond the one-year cap under Utah law. This applies regardless of what the agreement says or how it was negotiated.
2025 Healthcare Platform Worker Protection
Effective May 7, 2025, Utah enacted a new law — Utah Code § 58-89-101 — prohibiting health care services platforms from requiring healthcare workers to sign non-compete agreements. This law specifically targets platform-based healthcare staffing arrangements and gives healthcare workers on these platforms full freedom to work for competing platforms or employers.
✅ If you are a healthcare worker engaged through a health care services platform in Utah, your employer cannot require you to sign a non-compete agreement under the 2025 law. This protection is in addition to the general 1-year duration cap.
Utah's Reasonableness Standard
Within the one-year cap, Utah courts apply a reasonableness standard to evaluate non-compete agreements. The restriction must:
- Protect a legitimate employer business interest
- Be reasonable in geographic scope
- Be reasonable in the scope of restricted activities
- Be supported by adequate consideration
- Not impose undue hardship on the employee
Pending Legislation — House Bill 203
Utah House Bill 203, introduced in 2026, would significantly expand non-compete protections if enacted. The bill would prohibit non-competes for:
- Non-exempt employees under the FLSA (overtime-eligible workers)
- Students and employees under 18
- Employees earning less than $155,000 per year
- Employees terminated as part of a reduction in force
📋 Important: H.B. 203 has not yet been enacted as of May 2026. The current 1-year cap and reasonableness standard still apply. Check with an employment attorney for the current status of this legislation.
Broadcast Employee Restrictions in Utah
Utah has specific rules for non-compete agreements involving broadcast employees — on-air television and radio personalities. The rules combine wage threshold requirements with duration limits, reflecting the public interest in not keeping local broadcast personalities off the air.
Consideration in Utah
Utah requires adequate consideration for a non-compete to be enforceable. Employment at hire is the strongest form. Mid-employment agreements should be supported by additional benefit beyond merely continuing employment.