For those of you following the progress of House Bill 251, Fabian VanCott shareholder Greg Saylin attended the public forum this morning hosted by the Chamber’s working group and Speaker Hughes, Sen. Adams and Rep. Schultz at the State Capitol. While further amended (HB0251S03_021), the bill continues to progress and is scheduled for committee hearing this afternoon at 4:00 pm in Senate Building 215. This morning, significant and influential members of the business community voiced strong and passionate stands both for and against the bill. Some felt strongly that noncompetes should be abolished in their entirety and that the current version of the bill does not go far enough, and a few of Utah’s biggest employers announced at the forum that they will no longer enforce their noncompete agreements regardless of the outcome of the legislation. Other business leaders expressed that the bill is dangerous to the economy and to Utah’s status as one of the most business friendly states, and that in its present form, the bill would be injurious to their businesses and their ability to protect their hard-fought goodwill and the significant investments made in their employees. Others recognized that there are concerns that need to be addressed, particularly the misuse of noncompetes by “bad actors,” but that the bill should be postponed so that it can be more fully vetted and honed prior to the next legislative session. What is clear is that there is no consensus in the business community as to House Bill 251.

If you have an opinion about the legislation and have not conveyed it to your state senator or representative, we urge you to consider contacting them or attending this afternoon’s hearing. If you need your representatives’ contact information, please click here. With the Senate hearing today and the legislative session quickly coming to a close, the fate of the bill will be decided shortly.

As always, if you have questions or concerns, please do not hesitate to contact your Fabian VanCott attorney. Once the outcome is determined, we will advise clients about strategy, modifying employment agreements and policies, and addressing concerns about protecting their business interests.

Employment & Labor Practice Group

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