Yesterday, the Utah legislature approved a new bill which dramatically changes how employee non-compete contracts can be used. The new bill presumes that post employment restrictive covenants more than a year are invalid. Employers may also now be liable to employees for actual damages caused by invalid non-compete contracts. The new law is set to take effect on May 10, 2016. Johnstun Law will be advising business clients and individuals on issues presented with Utah’s new law on non-compete contracts.
Update (May 10, 2016): Governor Gary Herbert signed the new bill on March 22, 2016. A link to the new Utah non-compete law can be found here.