Our Employment & Labor Law Practice Group has become aware of a bill pending in the Utah legislature that would radically impact an employer’s ability to enforce covenants not to compete. Like in California, the new law would prohibit “post-employment restrictions” on an employee’s ability to compete with an employer after termination. An employer seeking to enforce such a provision (with no carve out for contracts that predate the legislation) would be liable for the employee’s actual damages, including all costs and attorneys’ fees.
As this legislation would significantly impact your ability as an employer to protect your business assets, goodwill, and confidential/proprietary information, we urge you to consider contacting your state senator and representative to express your opinion about the proposed legislation. We will keep you apprised of the outcome and whether you need to adjust your contracts, policies and practices. Please contact your Fabian VanCott attorney with any questions or to discuss further.
The full text of the bill can be found at: Post-Employment Restrictions Amendments