Non-Compete Amendments Introduced in Utah Legislature

Representative Brian Greene wasted no time introducing non-compete legislation in the Utah Legislature’s 2017 session.  On January 23, 2017, the first day of the legislative session, Representative Greene introduced H.B. 81.  H.B. 81 would require employers to pay additional “consideration,” such as a wage increase or a promotion, in order to enforce any non-compete agreement imposed on an existing employee.  It would also prevent employers from enforcing non-compete agreements if they fire the employee within one year after the employee signs the agreement.  Finally, the proposed law would force employers to bring enforcement actions, if at all, during the non-compete period.  They could not sue after the non-compete period expires.

The bill is currently before the Utah House Rules Committee.  We anticipate House Speaker Greg Hughes will support the bill and assure it continues through the process.  Stay tuned as we monitor the progress of this bill and any other proposals to amend Utah’s non-compete statute.