34-51-202. Exceptions for non-compete agreements.
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Effective 5/6/2026
34-51-202. Exceptions for non-compete agreements.
(1)This chapter does not prohibit:
(a)a reasonable severance agreement mutually and freely agreed upon in good faith at or after the time of termination that includes a non-compete agreement or a healthcare non-compete agreement; or
(b)a non-compete agreement or a healthcare non-compete agreement related to or arising out of the sale of a business, if the individual subject to the non-compete agreement or healthcare non-compete agreement receives value related to the sale of the business.
(2)Notwithstanding Subsection (1)(a) , a severance agreement remains subject to any requirements imposed under common law.
Amended by Chapter 341 , 2026 General Session