In Utah, a post-employment non-compete agreement cannot be enforced for more than one year after the day you stop working for the employer. This hard one-year ceiling comes from Utah's Post-Employment Restrictions Act (Utah Code Title 34, Chapter 51), which applies to non-compete agreements entered into on or after May 10, 2016. If your agreement tries to bar you from competing for two, three, or five years, the entire non-compete provision is void and unenforceable under Utah law - not just the part that exceeds one year. This is one of the most employee-friendly time limits in the country, and it is a statutory bright line, not a judge's case-by-case guess.
Utah's One-Year Rule Is the Headline
Utah did not ban non-competes outright the way a handful of states (such as California, North Dakota, Oklahoma, and Minnesota) have. Instead, the Utah Legislature passed the Post-Employment Restrictions Act in 2016 to sharply limit how long a non-compete can last. The core rule is simple: any post-employment non-compete a Utah employer asks a worker to sign is limited to a maximum of one year measured from the last day of employment.
If an employer drafts a non-compete that runs longer than one year and then tries to enforce that over-long term, the law treats the non-compete clause as void. That means the time limit is not something you have to negotiate down or beg a court to shorten - the statute itself caps it. Employers in Utah cannot lawfully demand more than 12 months of post-employment restriction through a non-compete.
Reasonableness Still Matters on Top of the One-Year Cap
The one-year statutory limit is a maximum, not a guarantee that a one-year non-compete is automatically valid. Utah courts continue to apply long-standing common-law reasonableness requirements. To be enforceable, a non-compete in Utah generally must:
Be supported by adequate consideration - something of value you received in exchange for signing, such as a job offer, a promotion, a raise, or specialized training. A signature demanded after you are already employed, with nothing new given in return, can be challenged.
Protect a legitimate business interest, such as trade secrets, confidential information, or customer goodwill - not merely the employer's wish to avoid ordinary competition.
Be reasonable in geographic scope - tied to the actual area where the employer does business, not the entire country when the company only operates locally.
Be reasonable in the scope of restricted activity - limited to the type of work you actually performed, not a blanket ban on any job in the industry.
A Utah court can find a non-compete unenforceable on any of these grounds even if it fits inside the one-year window. So both tests apply: the agreement must satisfy the statutory one-year cap and the common-law reasonableness standard.
What the Law Does NOT Cover
The Post-Employment Restrictions Act is specifically about non-compete agreements - clauses that stop you from working for a competitor or starting a competing business. Several related restrictions fall outside the one-year cap and are governed by other rules:
Nonsolicitation agreements (promising not to solicit the employer's customers or employees) are not subject to the Act's one-year limit.
Nondisclosure and confidentiality agreements protecting trade secrets and confidential information are not limited by the Act and can last longer than one year.
Agreements tied to the sale of a business - where an owner sells the company and agrees not to compete - are treated separately and can be longer.
Severance agreements reached at or after separation, where you accept money in exchange for a restriction, are also outside the standard rule.
This distinction matters: even if your non-compete is void, you can still be legally bound by a valid confidentiality clause or a customer-nonsolicitation clause in the same contract.
Special Rule for Broadcasting Employees
In 2018, Utah amended the Act to add tighter rules for the broadcasting industry. For employees of broadcasting companies, a non-compete is only enforceable in narrow circumstances - generally when the employee is paid above a salary threshold set by the statute, the agreement is part of a written employment contract of a limited term, and the employee is terminated for cause or breaches the contract. If you work in radio or television in Utah, the broadcasting-specific provisions, not just the general one-year rule, may apply to you.
The Fee-Shifting Penalty Protects Workers
One of the most powerful parts of Utah's law is its fee-shifting provision. If an employer tries to enforce a non-compete - in court or in arbitration - and the agreement is found to be unenforceable, the employer is liable for the employee's costs, attorney fees, and arbitration costs, plus actual damages. This rule discourages employers from using overbroad or void non-competes as a scare tactic, because losing an enforcement fight can cost the employer the worker's legal bills. It also makes it more realistic for an employee to find a lawyer willing to defend against an unenforceable non-compete.
Is There a Low-Wage Worker Ban in Utah?
Some states (for example, Washington, Illinois, Oregon, and Maine) prohibit non-competes for workers earning below a set income threshold. Utah took a different path: its protection is the one-year cap and the reasonableness and fee-shifting rules, which apply across the board rather than only to low earners. Utah does not have a statewide salary floor below which all non-competes are automatically banned, except for the special broadcasting-industry pay threshold described above. If you are a lower-wage worker, your strongest arguments in Utah are usually lack of consideration, lack of a legitimate business interest, and unreasonable scope.
How Utah Compares to the Federal Picture
There is currently no nationwide federal ban on non-competes. The Federal Trade Commission issued a rule in 2024 that would have banned most non-competes, but a federal court set it aside before it took effect, so it is not in force. That leaves non-compete enforceability to the states - which is exactly why Utah's one-year cap is so important. For wage context, the federal Fair Labor Standards Act (FLSA) sets a national minimum wage of $7.25 per hour and requires overtime at 1.5x pay after 40 hours in a workweek. Utah's state minimum wage matches the federal $7.25 per hour as of 2026; because rates can change, confirm the current figure with the Utah Labor Commission before relying on it. Wage rules and non-compete rules are separate legal topics, but both are areas where Utah law layers on top of the federal baseline.
What to Do If You Are Asked to Sign or Threatened
If an employer hands you a non-compete:
Read the time limit first. If it exceeds one year of post-employment restriction, that clause likely violates Utah law and is void.
Look for what you are getting in return. If you are already employed and are not being offered a raise, promotion, or other benefit, the agreement may fail for lack of consideration.
Do not sign under pressure without reading. Ask for a copy to review and, ideally, have an employment attorney look at it before you sign.
Keep documents. Save the agreement, offer letters, and any emails about it.
If a former employer threatens to enforce a non-compete or sends a cease-and-desist letter:
Do not assume the threat is valid - many non-competes in circulation are unenforceable under the one-year cap or the reasonableness rules.
Remember the fee-shifting rule: if the employer sues and loses, it may owe you attorney fees and damages.
Consult a Utah employment attorney promptly, especially before quitting, accepting a competing job, or responding in writing.
Where to Verify
Non-compete enforceability in Utah is governed by statute (Utah Code Title 34, Chapter 51) and by court decisions, so the most authoritative sources are the Utah Code itself and a licensed Utah attorney. For wage, overtime, and general labor questions, the state agency is the Utah Labor Commission (laborcommission.utah.gov), which administers Utah's wage and workplace laws. Because statutes and thresholds can change, verify any specific figure or deadline against the current Utah Code and the Labor Commission before acting. For a dispute over a specific non-compete, get individualized legal advice - the enforceability of your agreement depends on its exact wording and your circumstances.
Official Utah Sources
This page is based on Utah employment law. Rules and figures change — verify the current details directly with the official Utah sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Utah state law.
Frequently asked questions
What is the maximum length of a non-compete in Utah?
Under Utah's Post-Employment Restrictions Act, a post-employment non-compete entered into on or after May 10, 2016 cannot be enforced for more than one year from your last day of employment. An agreement that tries to restrict you longer than one year is void.
Are non-competes completely banned in Utah?
No. Unlike California or North Dakota, Utah allows non-competes but caps them at one year and requires them to be reasonable in geography, scope, and supported by consideration. They must also protect a legitimate business interest such as trade secrets or customer goodwill.
What happens if my Utah employer tries to enforce an unenforceable non-compete?
If an employer seeks to enforce a non-compete in court or arbitration and it is found unenforceable, Utah law makes the employer liable for the employee's costs, attorney fees, arbitration costs, and actual damages. This fee-shifting rule discourages employers from using void agreements as threats.
Does Utah ban non-competes for low-wage workers?
Utah does not have a general salary threshold below which all non-competes are banned. Its main protections - the one-year cap, reasonableness requirements, and fee-shifting - apply to workers regardless of pay. A special pay threshold applies only to broadcasting-industry employees.
Can my employer still enforce a confidentiality or nonsolicitation agreement?
Yes. The one-year cap applies to non-compete clauses. Nondisclosure, confidentiality, and customer-nonsolicitation agreements are governed by other rules and can last longer than one year, so you may remain bound by them even if a non-compete is void.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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