Utah Code 34-51-201. Post-employment restrictive covenants
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(1) Except as provided in Subsection (2) and in addition to any requirements imposed under common law, for a post-employment restrictive covenant entered into on or after May 10, 2016, an employer and an employee may not enter into a post-employment restrictive covenant for a period of more than one year from the day on which the employee is no longer employed by the employer. A post-employment restrictive covenant that violates this subsection is void.
Terms Used In Utah Code 34-51-201
- Broadcasting company: means a person engaged in the business of:(2)(a) distributing or transmitting electronic or electromagnetic signals to the general public using one or more of the following:(2)(a)(i) television;(2)(a)(ii) cable; or(2)(a)(iii) radio; or(2)(b) preparing, developing, or creating one or more programs or messages for distribution or transmission by means described in Subsection (2)(a). See Utah Code 34-51-102
- Broadcasting employee: means an employee of a broadcasting company. See Utah Code 34-51-102
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Contract: A legal written agreement that becomes binding when signed.
- Exempt broadcasting employee: means a broadcasting employee who is compensated on a salary basis, as defined in Utah Code 34-51-102
(2)(2)(a) Subject to Subsection (2)(b), a post-employment restrictive covenant between a broadcasting company and a broadcasting employee is valid only if:(2)(a)(i) the broadcasting employee is an exempt broadcasting employee;(2)(a)(ii) the post-employment restrictive covenant is part of a written employment contract of reasonable duration, based on industry standards, the position, the broadcasting employee’s experience, geography, and the parties’ unique circumstances; and(2)(a)(iii)(2)(a)(iii)(A) the broadcasting company terminates the broadcasting employee for cause; or(2)(a)(iii)(B) the broadcasting employee breaches the employment contract in a manner that results in the broadcasting employee no longer being employed by the broadcasting company.(2)(b) A post-employment restrictive covenant described in Subsection (2)(a) is enforceable for no longer than the earlier of:(2)(b)(i) one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or(2)(b)(ii) the day on which the original term of the employment contract containing the post-employment restrictive covenant ends.(2)(c) A post-employment restrictive covenant between a broadcasting company and a broadcasting employee that does not comply with this subsection is void.