Updated April 20, 2022
A Utah non-solicitation agreement is a contract between an employer and an employee that prohibits the employee from soliciting the employer’s customers following termination of employment. These agreements pertain to specific timeframes and geographical areas.
Legally Enforceable in Utah?
Yes, non-solicitation agreements are enforceable in Utah, within limits. While state statutes deal with non-compete agreements more generally, restricting employees from selling similar products of services for one (1) year after termination of employment, the statute specifically states it does not include non-solicitation agreements (Utah Code § 34-51-102). Non-solicitation agreements must be negotiated in good faith, necessary to protect the legitimate interests of the employer, and reasonably limited in timeframe and geographic area (TruGreen Cos., L.L.C. v. Mower Brothers (2008)). Agreements designed primarily to limit competition are not enforceable (Allen v. Rose Park Pharmacy (1951)).