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Utah Non-Solicitation Agreement

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 the end of their employment with the company. These agreements must pertain to specific timeframes and geographical areas.
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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

What should you include in a non-solicitation agreement.

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.

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