Utah Non-Compete Agreement: A Comprehensive Guide with Template
A non-compete agreement is a legal document that restricts an employee from engaging in certain activities that may harm their current employer`s business for a specific period after they leave the company. Employers use non-compete agreements to safeguard their interests and protect their confidential information, trade secrets, and customer base. If you`re an employer in Utah, you may consider using a non-compete agreement to ensure that your business stays competitive and your employees remain loyal for the duration of their employment and beyond.
Utah Non-Compete Law
Utah has specific laws governing the enforceability of non-compete agreements. According to Utah Code Ann. § 34-51-101, a non-compete agreement in Utah is enforceable only if it:
1. Is supported by consideration (such as employment or promotion)
2. Is necessary to protect the employer`s legitimate business interests
3. Is reasonable in scope and duration
4. Is not contrary to public policy or law
Utah courts strictly interpret non-compete agreements and will strike down any provision that exceeds the stated requirements. Therefore, it`s essential to draft a non-compete agreement that adheres to Utah`s legal standards and protects your business without infringing on employee rights.
Utah Non-Compete Agreement Template
The following is a sample non-compete agreement template that you may customize to suit your specific business needs. However, it`s crucial to seek legal counsel before using this template or drafting a non-compete agreement to ensure its compliance with Utah law.
This Non-Compete Agreement (the “Agreement”) is entered into on [DATE], by and between [EMPLOYER NAME], a [STATE] Corporation, with its principal office located at [ADDRESS] (“Employer”), and [EMPLOYEE NAME], residing at [ADDRESS] (“Employee”).
Employer is engaged in the [DESCRIBE BUSINESS]. Employee is employed by Employer in the capacity of [JOB TITLE] and has access to and knowledge of confidential and proprietary information.
2. Non-Compete Obligations
Employee agrees that for a period of [TIMEFRAME – e.g., 12 months] after the termination of their employment with Employer, they will not engage directly or indirectly in any business or activity that:
a. Competes with the business of Employer; or
b. Involves the use of or disclosure of Employer`s confidential or proprietary information.
The geographic scope of this non-compete agreement is [GEOGRAPHIC SCOPE – e.g., the State of Utah].
3. Confidentiality Obligations
Employee acknowledges that during their employment, they have access to and knowledge of confidential and proprietary information including but not limited to [LIST CONFIDENTIAL INFORMATION]. Employee agrees to keep such information confidential and not to disclose it to any third party, either during or after their employment.
If Employee breaches this Agreement, Employer shall be entitled to seek injunctive relief, as well as any other remedies available under Utah law. The prevailing party in any legal action related to this Agreement shall be entitled to recover reasonable attorneys` fees and court costs.
5. Governing Law and Jurisdiction
This Agreement shall be governed by and construed in accordance with the laws of the State of Utah, without regard to its principles of conflict of laws. Any legal action arising out of or relating to this Agreement shall be brought in the state and federal courts located in Utah.
If any provision of this Agreement is found to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect.
7. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes any prior or contemporaneous agreements or understandings, whether written or oral, regarding the subject matter of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
By: [AUTHORIZED SIGNATORY NAME]
Title: [AUTHORIZED SIGNATORY TITLE]