How long can a non-compete last in Utah?

Utah's Post-Employment Restrictions Act limits non-competes to one year from the date of termination. Any restriction exceeding one year is void as to the excess period.

Can I recover attorney fees if my Utah non-compete is unenforceable?

Yes. Utah's statute includes a fee-shifting provision requiring the employer to pay the employee's reasonable attorney fees and costs if the court finds the non-compete is unenforceable.

Does Utah's one-year limit apply to non-solicitation agreements?

No. Utah's Post-Employment Restrictions Act and its one-year limit apply specifically to non-compete agreements. Non-solicitation and non-disclosure agreements are not covered by the statute's durational limit.

Non-Compete Agreements in Utah: One-Year Limit

Utah's Post-Employment Restrictions Act

Utah enacted the Post-Employment Restrictions Act (Utah Code Section 34-51-101 et seq.) effective May 10, 2016. This statute imposes a hard limit on non-compete duration and establishes fee-shifting for overly broad agreements.

The One-Year Maximum

The centerpiece of Utah's law is a one-year maximum duration for non-compete agreements. Any non-compete that restricts an employee from competing for more than one year from the date of termination is void as to the excess period. This applies regardless of the employer's justification.

Fee-Shifting Provision

Utah's statute includes a notable fee-shifting provision: if an employer attempts to enforce a non-compete and the court finds the agreement is unenforceable, the employer must pay the employee's reasonable attorney fees and costs. This creates a financial deterrent against aggressive enforcement of questionable non-competes.

Beyond the Statute

For terms within the one-year limit, Utah courts still apply a reasonableness analysis:

The restriction must protect a legitimate business interest (trade secrets, goodwill, customer relationships)
The geographic scope must be reasonable
The restrictions on activities must be no broader than necessary
The agreement must be supported by adequate consideration

Consideration Requirements

For new employees, the employment is adequate consideration. Utah courts evaluate consideration for existing employees on a case-by-case basis. Continued employment may be sufficient in some contexts, but additional consideration strengthens the agreement.

What the Statute Does Not Cover

The one-year limit and fee-shifting provisions apply to post-employment non-compete agreements. The statute does not restrict:

Non-solicitation agreements
Non-disclosure agreements
Non-competes in the context of a business sale
Forfeiture-for-competition agreements (where the employee forfeits a benefit rather than being enjoined)

Red Flags

Duration exceeding one year
No legitimate business interest identified
Geographic scope unrelated to the employee's work area
Restrictions on general industry skills
Employer threatening to enforce a non-compete exceeding the statutory limit

When to Consult a Lawyer

Consider consulting a Utah employment attorney if your non-compete exceeds one year, if your employer is threatening enforcement, or if you want to understand your exposure. Utah's fee-shifting provision means the employer faces financial risk in pursuing unenforceable agreements.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.