34-51-201. Non-compete agreements.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(a)Except as provided in Subsection

(2)and in addition to any requirements imposed under common law, for a non-compete agreement entered into on or after May 10, 2016, an employer and an employee may not enter into a non-compete agreement for a period of more than one year from the day on which the employee is no longer employed by the employer.

(b)On or after May 6, 2026, a person and a healthcare worker may not enter into a healthcare non-compete agreement.

(c)A non-compete agreement that violates this Subsection

(1)is void.

(a)Subject to Subsection (2)(b) , a non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:

(i)the broadcasting employee is an exempt broadcasting employee;

(ii)the non-compete agreement is part of a written employment contract of reasonable duration, based on industry standards, the position, the broadcasting employee's experience, geography, and the parties' unique circumstances; and

(A)the broadcasting company terminates the broadcasting employee for cause; or

(B)the broadcasting employee breaches the employment contract in a manner that results in the broadcasting employee no longer being employed by the broadcasting company.

(b)A non-compete agreement described in Subsection (2)(a) is enforceable for no longer than the earlier of:

(i)one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or

(ii)the day on which the original term of the employment contract containing the non-compete agreement ends.

(c)A non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this Subsection

(2)is void.

(a)Subject to Subsection (3)(b) , on or after May 6, 2026, a person and a veterinarian may not enter into a veterinarian non-compete agreement.

(b)Subsection (3)(a) does not apply if the veterinarian has at least a 5% ownership interest in the person's business.

(c)A veterinarian non-compete agreement that violates this Subsection

(3)is void.

(4)If a provision in a veterinarian non-compete agreement entered into on or after May 6, 2026, requires that the parties to a dispute arising under the veterinarian non-compete agreement resolve the dispute in a forum outside of this state, the provision:

(a)is void and unenforceable; and

(b)is considered against the public policy of this state.

(5)Nothing in this section affects an agreement that is not a:

(a)non-compete agreement;

(b)healthcare non-compete agreement; or

(c)veterinarian non-compete agreement.

Amended by Chapter 341 , 2026 General Session