Utah Bans Non-Competes for Healthcare Workers

Utah recently amended its Post-Employment Restrictions Act (Utah Code 34-51-102, et. seq.) to effectively ban non-compete agreements in the healthcare and veterinary industries. Effective May 6, 2026, an employer may not enter into a non-compete agreement with a worker who is licensed by the State of Utah in practically every healthcare field. Here is a link to the bill that was signed into law, detailing the amendments made to the Act:  https://le.utah.gov/~2026/bills/static/HB0270.html.

Nonsolicitation agreements with healthcare workers will continue to be enforceable; however, under such an agreement, an employer may not prevent a healthcare worker from informing a patient of the healthcare worker’s current or future place of employment. Nonsolicitation agreements with veterinarians are expressly prohibited.

These amendments are prospective in nature; thus, non-compete and nonsolicitation agreements entered into prior to May 6, 2026, are not expressly impacted by these amendments.

Exceptions for non-competes in severance agreements and in connection with the sale of a business remain in place.

Please reach out to Russell Nevers if you have any questions.

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