Can my employer enforce a non-compete if I was fired?

Whether a non-compete survives involuntary termination depends on Utah law and the specific circumstances.

What should I know about severance agreements?

Severance agreements typically include waivers of legal claims, non-compete provisions, and confidentiality clauses. Have an attorney review before signing.

Can I negotiate my employment contract?

Yes. All terms of an employment contract are negotiable. Key items to review include compensation, termination provisions, non-compete clauses, and dispute resolution mechanisms.

Does an employee handbook create a contract?

Recognized by case law rather than statute (Touchard v. La-Z-Boy, 2006 UT 71): the at-will presumption may be overcome by an express or implied agreement limiting termination, a statute or regulation restricting termination, or a termination violating a clear and substantial public policy; the implied covenant of good faith and fair dealing cannot change at-will employment into employment requiring good cause for discharge (Vander Veur v. Groove Entertainment, 2019 UT 64). Whether a handbook creates contractual obligations depends on the specific language and disclaimers used.

Topic guideUpdated 2026-02-27

Utah Employment Contracts & Non-Competes

Non-compete enforceability, severance agreements, and contract issues under Utah employment law.

Employment relationships in Utah are governed by at-will principles unless modified by a written contract.

Non-Compete Agreements

Post-Employment Restrictions Act limits non-competes entered into on or after May 10, 2016 to one year after employment ends, in addition to common-law requirements (courts enforce non-competes only if supported by consideration, negotiated in good faith, necessary to protect goodwill, and reasonably limited in time and geographic area); on or after May 6, 2026, non-competes with statutorily defined healthcare workers are prohibited, and veterinarian non-competes are prohibited unless the veterinarian holds at least a 5% ownership interest in the business; broadcasting-employee non-competes are valid only under special conditions; non-compliant agreements are void §34-51-201.

Key Non-Compete Factors

	What Courts Examine
Duration	Whether the time restriction is reasonable
Geographic Scope	Whether the area restriction matches the employer's legitimate business area
Scope of Activity	Whether the restricted activities are narrowly tailored
Consideration	Whether the employee received adequate consideration for signing
Hardship	Whether enforcement would impose undue hardship on the employee

Severance Agreements

Read the entire agreement carefully before signing

Understand what rights you are waiving (often including the right to sue)

Note any non-compete, non-solicitation, or non-disparagement clauses

Consult an employment attorney before signing

⚠Signing a non-compete or severance agreement without understanding its terms can limit your future employment options and legal rights.

✓Non-compete agreements signed without adequate consideration may be unenforceable. An attorney can evaluate your specific agreement.

Prepare for Your Consultation

Quick checklist (Employment Law)

Gather these before your first consultation.

Employment records

(pay stubs, contracts, offer letters)

Communication evidence

(emails, texts, performance reviews)

Witness information

(coworkers who can corroborate)

General preparation tips only. Specific needs depend on your state and employment situation.

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