Is It Legally Enforceable in Utah?
Yes — within limits.
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.[1]
Agreements that are designed primarily to limit competition are not enforceable.[2]
Types of Solicitation to Prohibit
In Utah, as long as it is within reason, a non-solicitation agreement can restrict a former employee from soliciting the employer’s:
- Past or current customers/clients
- Past or current employees
- Independent contractors
- Other business relationships
What to Include
In order to stand up in a Utah court of law, a non-solicitation agreement should include limitations on the following:
1. Time Restraint
While Utah laws do not specify a maximum allowable duration for a non-solicit agreement or clause, the time span should be within reason. The agreement should specify a start and end date.
2. Geographical Restraint
Similarly, the agreement should also specify exactly the location where the individual is bound to the restrictive terms. To be considered reasonable, it should generally be limited to the city, county, or region where the employer is located.
3. Specific Action
The restrictions defined in the agreement should be considered reasonable and not explicitly designed to limit competition.
Related Forms
Download: PDF, MS Word, OpenDocument
Download: PDF, MS Word, OpenDocument