Non-compete laws · UT

Utah physician non-compete law

As of October 21, 2026, Utah law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.

Generally banned for physiciansChecked 2026-10-21

Since May 6, 2026, no person may enter a non-compete with a licensed healthcare worker, including physicians; such agreements are void. Non-solicitation agreements cannot stop a worker from telling patients their current or future workplace. Exceptions: severance agreements and sale-of-business covenants. (Utah Code § 34-51-201 (eff. 5/6/2026))

Changed recently. The current rule took effect 2026-05-06. Pages and guides written before then may describe the old rule.

Limits in the law

  • A nonsolicitation agreement entered on or after May 6, 2026 may not prevent a healthcare worker from informing a patient of the worker's current or future place of employment (Utah Code 34-51-203)
  • An employer that seeks to enforce a healthcare non-compete through arbitration or a lawsuit, and loses because the agreement is unenforceable, is liable for the worker's arbitration costs, attorney fees, court costs, and actual damages (34-51-301)

Who it covers

'Healthcare workers': individuals licensed and practicing in 33 listed professions. These include physicians (MD and DO, per Utah Code 58-68-102), PAs, APRNs (including CRNAs and interns), RNs, LPNs, dentists, podiatric and naturopathic physicians, optometrists, psychologists, physical therapists, nurse midwives, behavioral health and counseling professions, and others. Excludes licensees whose job does not involve practicing under the license. Covers agreements with any 'person', including employers.

Exceptions

  • Reasonable severance agreement mutually and freely agreed upon in good faith at or after termination (still subject to common law)
  • Non-compete related to or arising out of the sale of a business, if the individual receives value related to the sale
  • Nondisclosure and confidentiality agreements are not non-compete agreements; nonsolicitation agreements are allowed subject to the patient-notice limit

Effective date

The current rule took effect 2026-05-06.

Notes

Applies to agreements entered on or after May 6, 2026; earlier agreements remain under the general one-year cap (Utah Code 34-51-201) and common law. A 2025 law (SB 228) separately bars health care staffing platforms from requiring noncompetes.

Bills that have not become law

Non-compete bills from the 2025 and 2026 sessions that had not become law as of 2026-10-21, furthest along first. A bill that died has to be filed again to move in 2027. The 2027 session starts 2027-01-19 and ends 2027-03-05.

  • HB 203 (2026) · All workers, some physicians

    Would bar enforcing noncompetes against employees under certain conditions and against independent contractors; requires disclosure with job offers

    Committee action · Died. House committee favorable recommendation on 1st substitute 2026-01-30 (10-3-3); on 3rd reading calendar 2026-02-10, returned to Rules; enacting clause struck and filed 2026-03-06

  • HB 517 (2025) · Some health care workers

    Would void post-employment restrictive covenants between employers and mental health providers under certain conditions

    Introduced · Died. Numbered/introduced Feb 2025 (Rep. Chevrier); held in House Rules (fiscal note 2025-02-19); enacting clause struck and filed 2025-03-07 at sine die

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?
Check a contract against Utah lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Utah.