This bill amends provisions relating to non-compete agreements.
This bill:
AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.
Utah law currently limits non-compete agreements—contracts that restrict workers from taking jobs with competing employers after leaving a position—to no more than one year, but this bill would significantly expand those protections starting May 6, 2026. Employers would be barred from enforcing non-competes against hourly workers covered by federal wage law, student interns, minors 18 or younger, employees earning less than $155,000 annually, employees laid off due to workforce reductions, and independent contractors altogether. Employers who intend to use a non-compete would have to include it with the initial job offer, present it in plain language with a citation to the relevant state law, and give employees at least 14 days' written notice before it takes effect; agreements that don't meet these requirements would be void or unenforceable. Workers subjected to an unlawful non-compete could sue and, if they win in court, recover actual damages, an order stopping enforcement, and attorney fees, while arbitrators handling such disputes would be required to award arbitration costs and actual damages when a non-compete is found to violate the law.
Current version: HB0203S01 (Substitute)
Introduction
Jan 20
House Rules
Feb 10
House Committee
Jan 30
House Floor Vote
Feb 10
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
IntroductionJan 20
House RulesFeb 10
House CommitteeJan 30
House Floor VoteFeb 10
Senate Rules
Senate Committee
Senate 2nd Reading
Senate 3rd Reading
Governor
This bill amends provisions relating to non-compete agreements.
This bill:
AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.
Utah law currently limits non-compete agreements—contracts that restrict workers from taking jobs with competing employers after leaving a position—to no more than one year, but this bill would significantly expand those protections starting May 6, 2026. Employers would be barred from enforcing non-competes against hourly workers covered by federal wage law, student interns, minors 18 or younger, employees earning less than $155,000 annually, employees laid off due to workforce reductions, and independent contractors altogether. Employers who intend to use a non-compete would have to include it with the initial job offer, present it in plain language with a citation to the relevant state law, and give employees at least 14 days' written notice before it takes effect; agreements that don't meet these requirements would be void or unenforceable. Workers subjected to an unlawful non-compete could sue and, if they win in court, recover actual damages, an order stopping enforcement, and attorney fees, while arbitrators handling such disputes would be required to award arbitration costs and actual damages when a non-compete is found to violate the law.
Motion: Favorable Recommendation
House/ filed
House file for bills not passed
House/ strike enacting clause
Clerk of the House
House/ 3rd Reading Calendar to Rules
House Rules Committee
House/ 3rd reading
House 3rd Reading Calendar for House bills
LFA/ fiscal note publicly available for HB0203S01
Released
Last updated Aug 29, 2026, 5:26 PM