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Understanding Non-Compete Agreements in Utah

It’s time for you to move on to a new chapter in your career. As you prepare to leave your company, you may be required to sign a non-compete agreement to complete the end of your employment period. Or, you may have signed one when you started at the company. You may be wondering what a non-compete agreement is, but no worries, the Pearson Butler team is here to assist you with all of your employment needs.

What’s a Non-Compete Agreement?

A non-compete agreement is a written agreement between an employee and employer prohibiting the employee from working in a similar or rival business once they have left the company. If your employer is asking you to sign a non-compete agreement before you leave, there’s a chance it may not be enforceable.

Are Non-Compete Agreements Enforceable in Utah?

In Utah, an employer may enforce a non-compete agreement as long as it’s within a year from the day the employee is no longer employed. However, this is only for non-compete agreements created after May 10, 2016. If the employer can show the following elements, then a court will likely enforce the agreement:

  • There was no “bad faith” in negotiations,
  • The agreement was “supported by consideration,”
  • The agreement was “necessary to protect the goodwill of the business,”
  • It was “reasonable in its restrictions in terms of time and geographic area.”

A non-compete agreement can be enforced if it was part of a severance agreement that was mutually agreed upon between the employer and employee at the time of termination and meets the above elements.

If a former employee violates a non-compete agreement, the employer can ask a court to issue orders that would command them to stop violating the order. They can also make the former employee pay damages for violating the non-compete agreement if their new position harmed business operations.

It’s essential to note that if the court finds that the non-compete agreement is unreasonable or fails to meet the above elements, it is likely it will not be enforced. If you have questions or concerns about your non-compete agreement, we suggest you speak with an employment attorney.

Employment Attorneys in South Jordan

We’ve said this before, and we’ll say it again—each case is different. However, if you feel like your employer is being unfair regarding your non-compete agreement, you should have your voice heard. When you’re ready, give our attorneys at Pearson Butler a call. We’ll walk you through your agreement and figure out what potential options are available for you.

You can contact our office through our website or by phone at (800) 265-2314 to get started on your free consultation.