Many employers in Utah use non-competition agreements to protect their confidential information, customer relationships and investment in employee training and development. In a somewhat surprising move, the usually employer-friendly Utah State legislature has signaled its willingness to join California and a handful of other states in attempting to regulate these kinds of agreements.
The Utah
As we blogged about earlier, courts in most states just plain don’t like employee noncompete agreements. Particularly when it comes to mid- and low-level employees, courts worry that enforcing a noncompete agreement will hamper innovation, restrict competition, and unfairly burden a former employee’s ability to earn a living. For that reason, a court typically will review an noncompete’s justification, scope, and length with the judicial equivalent of a fine-tooth comb.
Courts have been picking away at the enforceability of employee noncompetes for years, but more recently, legislatures have jumped into the mix with varying levels of aggressiveness. California has long banned noncompetes outright, and several other states either have followed suit (e.g., North Dakota) or are considering whether to pass similar laws (e.g., Massachusetts, Washington). Still others have adopted laws that make it easier for employers to enforce noncompetes (e.g., Georgia), or are considering whether to do so to remedy past judicial reticence in the area (e.g., Wisconsin).Continue Reading Oregon Tightens the Screws on Noncompetes: 18 Months Will Soon Be the Maximum Period of Restriction