HB 251 - Limits Non-Compete Agreements - Utah Key Vote

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Title: Limits Non-Compete Agreements

Vote Smart's Synopsis:

Vote to pass a bill that prohibits non-compete agreements made on or after May 10, 2016.

Highlights:

  • Prohibits an employer or employee from entering into a “post-employment restrictive covenant” on or after May 10, 2016 for a period of more than 1 year from the day the employee ceases employment (Sec. 3). 
  • Defines “post-employment restrictive covenant” as a written or oral agreement between an employer and employee under which the employee agrees that he or she will not compete with the employer in providing products, processes, or services that are similar to the employer’s (Sec. 2).

 

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

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