A non-compete clause is a provision in an employment contract that restricts an employee from working for a competitor after leaving their current job. Non-compete clauses are common in Utah, especially for employees in high-tech industries or those with access to sensitive business information. If you are considering signing a non-compete agreement, it’s important to understand the basics of Utah non-compete laws and what you need to know before you sign.
Enforceability of Non-Compete Clauses in Utah
In Utah, non-compete clauses are enforceable if they follow the laws Utah has put forward for employment non-compete clauses. This depends on several factors, including, the type of position the employee will fill, the amount of investment the company made in training the person for that position, the scope of the geography and the length of time the restriction will last.
As to length of time, a non-compete clause that restricts an employee from working in the same industry for one year can be enforceable. Anything after one year is considered void in the state of Utah.
There are certain situations in which a employment non-compete clauses may not be enforceable in Utah. These include:
- If the non-compete clause was signed as a condition of employment, but the employee was not given any additional compensation or benefits for signing it
- If the non-compete clause was signed after the employee started working, without any additional compensation or benefits
- If the non-compete clause is not limited in geography
How to Evaluate a Non-Compete Clause
Before signing a non-compete agreement, it’s important to carefully review the clause and understand the restrictions it places on your future employment. Reach out to our Utah Employment Attorney if you have questions about the enforceability of your non-compete agreement.
It’s also a good idea to consider the impact that the non-compete clause may have on your future career prospects. If the clause is overly restrictive, it may limit your ability to find new employment in your chosen field, which could have serious financial consequences.
Utah non-compete employment contracts can be complex and have far-reaching consequences. Before signing a non-compete agreement, it’s important to understand the basics of Utah non-compete laws and the restrictions that the clause places on your future employment. With the right guidance and support, from our Utah Employment Law Firm you can make an informed decision and protect your rights and future career prospects.