Non-competes Remain on the Potential Chopping Block in Utah

Lawmakers are cutting back non-competes across the country. Earlier this year, Montana’s expanded prohibition on non-competes for healthcare workers took effect. In March, Washington’s governor signed a near complete ban on non-competes, effective in 2027. And, as we’ve previously reported, the Utah Legislature floated a bill to eliminate most non-compete agreements earlier this year, though the bill was ultimately tabled. That is not the end of the story. Non-competes remain squarely on Utah’s potential legislative agenda: recently, the Business and Labor Interim Committee heard presentations from legislative staff and stakeholders on the future of non-compete reform in the state. The Committee heard presentations on “legislative history and policy, the current status of non-compete regulation, and employer and employee perspectives on effectiveness, appropriateness, and merits of the use of non-competition clauses.” Stay tuned for more updates as planning for the 2027 Utah legislative session continues.