One Year Max: Utah's New Non-Compete Law
Last week, the Utah legislature passed a new law limiting non-compete agreements to a maximum duration of one year. Going forward, new non-compete agreements longer than one year are automatically void, and businesses who try to enforce those agreements may be required to pay legal expenses and other damages to their former employee. Luckily, the new law does not affect confidentiality agreements, non-solicitation agreements, non-disclosure agreements, severance agreements or non-compete agreements involved in the sale of a business.
TAKE-AWAY: Non-compete agreements are still valuable tools for Utah businesses hoping to protect their confidential and proprietary business information. However, businesses should partner with legal counsel to review their current non-compete language and to make any necessary revisions to ensure future compliance.