34-51-201.  Post-employment restrictive covenants.

(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:
(a) distributing or transmitting electronic or electromagnetic signals to the general public using one or more of the following:
(i) television;
(ii) cable; or
(iii) radio; or
(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 29 C. See Utah Code 34-51-102
    • (2) 

    (a)  Subject to Subsection (2)(b), a post-employment restrictive covenant between a broadcasting company and a broadcasting employee is valid only if:

    (i)  the broadcasting employee is an exempt broadcasting employee;

    (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

    (iii) 

    (A)  the broadcasting company terminates the broadcasting employee for cause; or

    (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.

    (b)  A post-employment restrictive covenant described in Subsection (2)(a) is enforceable for no longer than the earlier of:

    (i)  one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or

    (ii)  the day on which the original term of the employment contract containing the post-employment restrictive covenant ends.

    (c)  A post-employment restrictive covenant between a broadcasting company and a broadcasting employee that does not comply with this subsection is void.

    Amended by Chapter 132, 2019 General Session

      Previous section
    Next section  
     Part 2 Contents