Non-Compete Agreements and Getting Fired in Utah: What Changes
General information, not legal advice. Read the full disclaimer.
Short answer: Utah's non-compete statute does not make a non-compete unenforceable just because you were fired without cause. An earlier version of this article said it did; the current statute does not contain that rule. What the statute does say is that, for non-competes entered into on or after May 10, 2016, an employer and an employee may not agree to a non-compete lasting more than one year from the day the employee is no longer employed, and a non-compete that violates the limit is void (Utah Code § 34-51-201(1)(a), (c)). The one-year clock runs from the end of your employment whether you quit or were terminated. Separate rules apply to broadcasting employees (valid only if the employer terminates for cause or the employee breaches the contract), severance agreements and sales of a business, and since May 6, 2026 health care workers generally can't be bound by non-competes.
Who this guide is for
Utah employees who signed a non-compete and have lost or left their job, and employers deciding how to enforce one. This is general information, not legal advice. Non-competes are also governed by common-law requirements ("in addition to any requirements imposed under common law"), so an agreement within one year can still be unenforceable if it is unreasonable.
The baseline rule (§ 34-51-201(1))
- Maximum duration: one year from the day you are no longer employed by the employer, for agreements entered into on or after May 10, 2016.
- Violation: the agreement is void.
- Common law still applies: a one-year non-compete can still fail if it's broader than the employer's legitimate interests.
Does it matter if I quit or was fired?
The statute's duration cap runs from the day employment ends and doesn't distinguish between quitting and being terminated. Whether you were fired, laid off or resigned can still matter in practice, for example in arguments about whether the employer has a legitimate interest to protect and in how a court weighs fairness, so talk to an employment lawyer about the specifics. See Utah At-Will Employment and Wrongful Termination in Utah.
Broadcasting employees (§ 34-51-201(2))
A non-compete between a broadcasting company and a broadcasting employee is valid only if the employee is an exempt broadcasting employee, the non-compete is part of a written employment contract of reasonable duration, and the company terminated the employee for cause or the employee breached the contract in a way that ended the employment. It's enforceable for no longer than the earlier of one year after employment ends or the end of the contract's original term. Otherwise it is void.
Severance agreements and sale of a business (§ 34-51-202)
The chapter does not prohibit (a) a reasonable severance agreement mutually and freely agreed to in good faith at or after termination that includes a non-compete, or (b) a non-compete arising from the sale of a business when the person receives value related to the sale. Severance agreements remain subject to common-law requirements. If you're offered severance, read the non-compete before signing. See Utah Severance Agreements.
Health care workers and veterinarians (2026)
On or after May 6, 2026, a person and a healthcare worker may not enter into a healthcare non-compete agreement (§ 34-51-201(1)(b)), and veterinarians without at least a 5% ownership interest have a similar protection (§ 34-51-201(3)). See Utah Non-Compete Agreement Laws and Utah Non-Solicitation Agreements.
What to do
- Find the agreement and check the date you signed it and the restricted period.
- Count one year from your last day.
- Don't ignore a demand letter. Ask an employment lawyer or legal aid. See How to Find Free or Low-Cost Legal Help in Utah.
- If you were owed wages or fired unlawfully, see Utah Wage Theft and Utah Unemployment Benefits Appeal.
Frequently asked questions
If I'm fired, can my employer still enforce my non-compete?
Possibly, within the statute's one-year limit and common-law reasonableness. The statute does not void a non-compete simply because you were fired without cause.
When does the one year start?
On the day you are no longer employed.
Are non-solicitation agreements limited the same way?
The one-year cap applies to non-compete agreements; non-solicitation agreements are evaluated differently. See the linked guide.
Can a non-compete be part of a severance deal?
Yes, if the severance agreement is reasonable and mutually and freely agreed to in good faith.