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A Q&A guide to non-compete agreements be-
tween employers and employees for private
employers in Utah. This Q&A addresses enforce-
ment and drafting considerations for restrictive
covenants such as post-employment covenants
not to compete and non-solicitation of custom-
ers and employees. Federal, local or municipal
law may impose additional or different require-
ments. Answer to questions can be compared
across a number of jurisdictions (see Non-com-
pete Laws: State Q&A Tool).
OVERVIEW OF STATE NON-COMPETE LAW
1. If non-competes in your jurisdiction are governed by
statute(s) or regulation(s), identify the state statute(s) or
regulation(s) governing:
Non-competes in employment generally.
Non-competes in employment in specific industries or
professions.
GENERAL STATUTE AND REGULATION
Utah does not have any statutes or regulations governing non-com-
petes generally.
INDUSTRY- OR PROFESSION-SPECIFIC STATUTE OR REGULATION
Attorneys: Utah R. of Prof'l Conduct 5.6
Rule 5.6 of the Utah Rules of Professional Conduct governs non-
competes in the legal industry.
2. For each statute or regulation identified in Question 1,
identify the essential elements for non-compete enforcement
and any absolute barriers to enforcement identified in the
statute or regulation.
GENERAL STATUTE AND REGULATION
Utah does not have any statutes or regulations governing non-com-
petes generally.
INDUSTRY- OR PROFESSION-SPECIFIC STATUTE OR REGULATION
Attorneys: Utah R. of Prof'l Conduct 5.6
A lawyer cannot offer or make:
A partnership or employment agreement that restricts lawyers
from practicing law after ending the relationship, except for an
agreement about retirement benefits.
A settlement agreement that restricts lawyers from practicing law
as a part of the settlement of a client controversy.
(Utah R. Prof'l Conduct 5.6.)
ENFORCEMENT CONSIDERATIONS
3. If courts in your jurisdiction disfavor or generally decline to
enforce non-competes, please identify and briefly describe the
key cases creating relevant precedent in your jurisdiction.
To be enforceable, Utah courts require non-competes to be:
Supported by consideration.
Negotiated in good faith.
Necessary to protect the goodwill of the business.
Reasonable in duration and geographic area.
(Allen v. Rose Park Pharmacy, 237 P.2d 823 (Utah 1951) and Kasco Serv.
Corp. v. Benson, 831 P.2d 86 (Utah 1992)).
Non-compete Laws: Utah
DEREK LANGTON AND SUSAN BAIRD MOTSCHIEDLER, PARSONS BEHLE & LATIMER, WITH PRACTICAL LAW LABOR & EMPLOYMENT
Non Compete Agreement Laws
source: parsonsbehle.com
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