There were some major developments last week regarding non-compete agreements.
Last session the Utah Legislature passed H.B. 251, statutorily limiting the effect of employer-employee, non-compete agreements to a one-year period following separation, and changing provisions related to legal remedies. It was also determined that a balanced and fair research study was necessary to better understand the issue.
The study, conducted by Cicero, sought to identify what the key issues concerning non-compete agreements are to better inform policymakers and business leaders. Here are the key developments from the study:
- Good information should drive good policy decisions. All stakeholders have been very committed to the research first process. They have supported this unprecedented effort at collecting Utah specific information that will then drive their policy decisions.
- The results of the study demonstrate that last year's bill is working, addresses concerns from both sides of the issue, and creates a balance between protecting the interests of both employees and employers.
- Due to this and our collaborative process, there has been agreement for no further legislation regarding non-compete agreements during this legislative session.
Representative Schultz issued a full statement to his colleagues in the House and Senate late last week regarding the survey results and to share this decision to not proceed with further legislation this session. To view the statement: CLICK HERE.
We are pleased with the outcome and thank all parties involved in this collaborative process. We will continue to monitor any additional outcomes from the study and any additional discussions around non-compete agreements.
Utah Legislative Update: Non-compete Agreements