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Utah Code § 34-51-202

Exceptions for non-compete agreements

Amended by Chapter 341, 2026 General Session

(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.

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.