Non-Compete Issue Resurfaces in Utah Legislature

Contact: Keith A. Call

The debate over employee non-compete agreements is becoming an annual affair in the Utah Legislature. This year, Representative Mike Schultz has introduced a bill aimed solely at media markets. His proposed amendment to Utah’s non-compete statute would impose a blanket prohibition on non-compete agreements in the news media market.

This reminds me of several years ago when weather reporter Mark Eubank mysteriously disappeared from KUTV Channel 2, only to reappear one or two years later on KSL Channel 5. Under the proposed new law, news media companies could not prohibit reporters like Eubank from immediately moving to a local competitor. News reporters and former reporters applaud the proposed change, citing abuses of non-compete agreements in their industry in particular. Of course, media companies decry this proposed change, citing the huge investments they make to build their TV and media personalities.

The bill passed the House Business and Labor Committee yesterday (February 8) on an 8-5 vote and now moves on to the House floor.

For questions or more information about non-compete agreements, please contact SCM attorney Keith A. Call.