Utah non-compete law: Utah Code 34-51-201 for recruiters

Utah allows non-competes but caps them. Under Utah's Post-employment Restrictions Act, a non-compete entered into on or after May 10, 2016 may last no more than one year after the job ends, and an employer that tries to enforce one that turns out to be unenforceable pays the worker's legal costs and damages. As of October 2026, two 2026 laws in effect since May 6, 2026 go further: new non-competes with a long list of licensed health care workers are void, and so are new non-competes with veterinarians who own less than 5 percent of the business. For a recruiter, Utah turns on the signing date, the length of the restriction and the candidate's license.

General screening questions are in non-compete questions for candidates, agency-side clauses in non-solicitation clauses for recruiters, and the state's other hiring rules in hiring employees in Utah.

What does Utah Code 34-51-201 say?

Section 34-51-201(1)(a) says that "in addition to any requirements imposed under common law," for a non-compete entered into on or after May 10, 2016, "an employer and an employee may not enter into a non-compete agreement for a period of more than one year" from the day employment ends. A non-compete that breaks the rule "is void." Two features of the definitions in section 34-51-102 matter for screening:

• A non-compete can be "written or oral," so "I never signed anything, but my manager said I couldn't work for a competitor" is still worth recording.
• A non-compete does not include a nonsolicitation, nondisclosure or confidentiality agreement. Those are not capped at a year by this section, although the 2026 laws limit some of them in health care and veterinary work.

Because the one-year cap is "in addition to" common law, a one-year non-compete is not automatically enforceable; it still has to be reasonable. The cap simply rules out anything longer.

What changed on May 6, 2026?

The health care list is long. It covers licensed and practicing physicians, physician assistants, registered and licensed practical nurses, advanced practice registered nurses (including CRNAs and APRN interns), nurse midwives, dentists, optometrists, podiatric physicians, physical therapists, psychologists, mental health therapists, clinical and certified social workers, marriage and family therapists, clinical mental health counselors, substance use disorder counselors, behavior analysts, behavioral health coaches and technicians, genetic counselors, certified dietitians, massage therapists, medication aides, naturopathic physicians, radiology practitioners, respiratory care practitioners and others named in section 34-51-102(5). It excludes license holders whose job "does not require or involve practicing under the scope of the individual's license," so a nurse hired as a recruiter or sales representative may not be covered.

The health care rule also reaches agreements between "a person" and the worker, not only employers, which matters for staffing firms that contract with clinicians. Both 2026 laws apply to agreements entered into on or after May 6, 2026; they do not void older agreements, which stay under the one-year rule and common law.

What exceptions and special rules apply?

• Severance. Section 34-51-202 does not prohibit "a reasonable severance agreement mutually and freely agreed upon in good faith at or after the time of termination" that includes a non-compete, including a health care non-compete. Common law still applies to it.
• Sale of a business. A non-compete related to the sale of a business is allowed if the person bound by it "receives value related to the sale of the business."
• Broadcasting. A broadcasting company's non-compete is valid only for an exempt broadcasting employee on a written contract of reasonable duration, and only where the employee is terminated for cause or breaches the contract; it lasts no longer than the earlier of one year or the end of the original contract term.

Who pays if the employer loses?

Section 34-51-301 is the part of Utah's law that changes behavior. If an employer seeks to enforce a non-compete, health care non-compete, nondisclosure clause or nonsolicitation agreement through arbitration or a lawsuit, "and it is determined that" the agreement "is unenforceable, the employer is liable for the employee's" arbitration costs, attorney fees and court costs, and actual damages. A former employer weighing a suit over a two-year non-compete has to price that in.

What is the risk to the hiring company?

Utah sets a specific bar for claims that a new employer interfered with someone else's contract. In C.R. England v. Swift Transportation, 2019 UT 8, a trucking company argued that a competitor was liable simply because it knew about the drivers' employment agreements, recruited them anyway, and the drivers left. The Utah Supreme Court declined that approach and reaffirmed that intentional interference with contract requires "improper means": conduct "contrary to law, such as violations of statutes, regulations, or recognized common-law rules," or the violation of an established, objective standard of a trade or profession.

That is not permission to ignore an agreement. Misusing a former employer's confidential information can still be improper means and can bring claims under Utah's Uniform Trade Secrets Act. It does mean the facts of how a candidate was recruited, and what they brought with them, matter more in Utah than the bare fact that they had an agreement.

What should a recruiter ask a Utah candidate?

UTAH CANDIDATE: restrictive agreements

1. "Have you signed, or agreed to, a non-compete, a non-solicit, or a
    confidentiality agreement with your current or a past employer?"
2. "Roughly when was it signed: before or after May 6, 2026?"
3. "How long does the non-compete run after you leave?"
4. "Is your current role licensed health care or veterinary work, and
    do you practice under that license in it?"
5. "If you're a veterinarian, do you own part of the practice?"
6. "Was it part of a severance agreement or the sale of a business?"
7. "Could the hiring company's lawyer see it, as far as it allows?"
Always: "We don't want any confidential information, documents or
client lists from your current employer."

• Do not tell a candidate their two-year non-compete is "only one year now." Section 201 says a non-compete longer than a year is void; what that means for their agreement is for counsel.
• Do not tell a nurse who signed in 2025 that the 2026 ban covers them. It applies from May 6, 2026.
• Do record recruiting contacts accurately. Under C.R. England, how the candidate was approached can matter.

When your client is the Utah employer

A Utah client's offer template should not carry a non-compete longer than one year, should not carry a health care non-compete for a listed clinical role, and should not restrict a veterinarian with less than 5 percent ownership. Health care nonsolicitation clauses need a carve-out for telling patients where the clinician works. The offer call script is the place to confirm what the candidate will sign, and agency licensing is in the Utah staffing agency license guide.

Is there a federal rule on top of Utah's?

No. The FTC's 2024 rule was set aside in court; the Commission voted on September 5, 2025 to accept the vacatur, and a February 12, 2026 notice removed it from the Code of Federal Regulations. Utah's neighbors differ sharply; see the Colorado page and the Wyoming page.

Utah checklist

• Restrictive-agreement question asked of every candidate for the role, in the same words, including oral agreements.
• Recorded: signing date (before or after May 6, 2026), length after employment, severance or sale context.
• Health care and veterinary roles flagged, with license use and any ownership noted.
• No opinion given on enforceability; the candidate pointed to their own lawyer.
• Recruiting contact and "bring nothing with you" instruction recorded.
• Client's covenant checked for the one-year cap and the 2026 bans before the offer.
• Code re-checked on the Legislature's site before relying on this page.