Healthcare Worker Post-Employment Amendments

17
34-51-101
34-51-102
34-51-201
34-51-202
34-51-203
34-51-301
34A-5-114
34-51-101
34-51-102
34-51-201
34-51-202
34-51-203
34-51-301
34A-5-114
0
Healthcare Worker Post-employment Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Katy Hall
Senate Sponsor: Brady Brammer
LONG TITLE
General Description:
This bill amends provisions relating to a non-compete agreement for a healthcare worker.
Highlighted Provisions:
This bill:
defines terms;
makes void a non-compete agreement entered into between an employer and a healthcare
worker;
makes void a nonsolicitation agreement between a person and a healthcare worker under
certain circumstances; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34-51-102
, as last amended by Laws of Utah 2018, Chapter 465
34-51-201
, as last amended by Laws of Utah 2019, Chapter 132
34-51-202
, as enacted by Laws of Utah 2016, Chapter 153
34-51-301
, as enacted by Laws of Utah 2016, Chapter 153
34A-5-114
, as last amended by Laws of Utah 2025, Chapters 173, 425
ENACTS:
34-51-203
, Utah Code Annotated 1953
REPEALS:
34-51-101
, as enacted by Laws of Utah 2016, Chapter 153
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
34-51-102
is amended to read:
34-51-102
. Definitions.
As used in this chapter:
(1)
"Broadcasting employee" means an employee of a broadcasting company.
(2)
"Broadcasting company" means a person engaged in the business of:
(a)
distributing or transmitting electronic or electromagnetic signals to the general public
using one or more of the following:
(i)
television;
(ii)
cable; or
(iii)
radio; or
(b)
preparing, developing, or creating one or more programs or messages for distribution
or transmission by means described in Subsection
(2)(a)
.
(3)
"Exempt broadcasting employee" means a broadcasting employee who is compensated
on a salary basis, as defined in 29 C.F.R. Sec. 541.602, at a rate equal to or greater than
the greater of:
(a)
$913 per week, or an equivalent amount if calculated for a period longer than one
week; or
(b)
the rate at which an employee qualifies as exempt under the Fair Labor Standards
Act, 29 U.S.C. Sec. 213(a) on a salary basis as defined in 29 C.F.R. Part 541.
(4)
"Healthcare non-compete agreement" means an agreement between a person and a
healthcare worker within which the healthcare worker agrees that, after the day on which
the healthcare worker no longer works for or with the person, the healthcare worker will
not engage in a service that the healthcare worker may provide under the scope of the
healthcare worker's license:
(a)
for a restricted period of time; or
(b)
within a specific geographic area.
(5)
(a)
"Healthcare worker" means an individual licensed and practicing as:
(i)
an advanced practice registered nurse intern under Title 58, Chapter 31b, Nurse
Practice Act;
(ii)
an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
Act;
(iii)
an advanced practice registered nurse - CRNA without prescriptive practice
under Title 58, Chapter 31b, Nurse Practice Act;
(iv)
an associate marriage and family therapist under Section
58-60-304
;
(v)
a behavioral health coach under Section
58-60-603
;
(vi)
a behavioral health technician under Section
58-60-603
;
(vii)
a certified dietitian as that term is defined in Section
58-49-2
;
(viii)
a certified psychology resident under Title 58, Chapter 60, Part 4, Clinical
Mental Health Counselor Licensing Act;
(ix)
a certified social worker under Title 58, Chapter 60, Part 2, Social Worker
Licensing Act;
(x)
a clinical mental health counselor under Title 58, Chapter 60, Part 4, Clinical
Mental Health Counselor Licensing Act;
(xi)
a clinical social worker under Title 58, Chapter 60, Part 2, Social Worker
Licensing Act;
(xii)
a dentist as that term is defined in Section
58-69-102
;
(xiii)
a genetic counselor as that term is defined in Section
58-75-102
;
(xiv)
a licensed assistant behavior analyst under Title 58, Chapter 61, Part 7,
Behavior Analyst Licensing Act;
(xv)
a licensed behavior analyst under Title 58, Chapter 61, Part 7, Behavior Analyst
Licensing Act;
(xvi)
a licensed massage therapist as that term is defined in Section
58-47b-102
;
(xvii)
a licensed practical nurse under Title 58, Chapter 31b, Nurse Practice Act;
(xviii)
a marriage and family therapist under Section
58-60-304
;
(xix)
a medication aide certified as that term is defined in Section
58-31b-102
;
(xx)
a mental health therapist as that term is defined in Section
58-60-102
;
(xxi)
a naturopathic physician as that term is defined in Section
58-71-102
;
(xxii)
a nurse midwife as that term is defined in Section
58-44a-102
;
(xxiii)
an optometrist as that term is defined in Section
58-16a-102
;
(xxiv)
a physical therapist under Section
58-24b-302
;
(xxv)
a physician as that term is defined in Section
58-68-102
;
(xxvi)
a physician assistant as that term is defined in Section
58-70a-102
;
(xxvii)
a psychologist under Section
58-61-301
;
(xxviii)
a podiatric physician under Section
58-5a-301
;
(xxix)
a radiology practitioner as that term is defined in Section
58-54-102
;
(xxx)
a registered nurse under Title 58, Chapter 31b, Nurse Practice Act;
(xxxi)
a respiratory care practitioner as that term is defined in Section
58-57-2
;
(xxxii)
a social service worker under Title 58, Chapter 60, Part 2, Social Worker
Licensing Act; or
(xxxiii)
a substance use disorder counselor under Title 58, Chapter 60, Part 5,
Substance Use Disorder Counselor Act.
(b)
"Healthcare worker" does not include an individual:
(i)
who holds a license described in Subsection
(5)(a)(i)
through
(xxxiii)
; and
(ii)
whose employment or contractual agreement does not require or involve
practicing under the scope of the individual's license.
(6)
"Nonsolicitation agreement" means an agreement, between a person and an individual
who works for or with the person, in which the individual agrees that on or after the day
on which the individual no longer works for or with the person, the individual will not
solicit the person's clients, customers, or employees.
(4)
(7)
(a)
"Post-employment restrictive covenant," also known as a "covenant not to
compete" or "noncompete agreement,"
"Non-compete agreement"
means an
agreement, written or oral, between an employer and employee under which the
employee agrees that
on or after the day on which the employer no longer employs
the employee,
the employee, either alone or as an employee of another person, will
not compete with the employer in providing
products, processes, or services
a
product, process, or service
that
are
is
similar to the employer's
products, processes,
or services
product, process, or service
.
(b)
"Post-employment restrictive covenant"
"Non-compete agreement"
does not include
nonsolicitation agreements or nondisclosure or confidentiality agreements.
:
(i)
a nonsolicitation agreement;
(ii)
a nondisclosure agreement; or
(iii)
a confidentiality agreement.
(5)
(8)
"Sale of a business" means a transfer of the ownership by sale, acquisition, merger,
or other method of the tangible or intangible assets of a business entity, or a division or
segment of the business entity.
Section 2. Section
34-51-201
is amended to read:
34-51-201
. Non-compete agreements.
(1)
(a)
Except as provided in Subsection
(2)
and in addition to any requirements imposed
under common law, for a
post-employment restrictive covenant
non-compete
agreement
entered into on or after May 10, 2016, an employer and an employee may
not enter into a
post-employment restrictive covenant
non-compete agreement
for a
period of more than one year from the day on which the employee is no longer
employed by the employer.
(b)
On or after May 6, 2026, a person and a healthcare worker may not enter into a
healthcare non-compete agreement.
(c)

A
post-employment restrictive covenant
non-compete agreement
that violates this
subsection
Subsection
(1)
is void.
(2)
(a)
Subject to Subsection
(2)(b)
, a
post-employment restrictive covenant
non-compete agreement
between a broadcasting company and a broadcasting
employee is valid only if:
(i)
the broadcasting employee is an exempt broadcasting employee;
(ii)
the
post-employment restrictive covenant
non-compete agreement
is part of a
written employment contract of reasonable duration, based on industry standards,
the position, the broadcasting employee's experience, geography, and the parties'
unique circumstances; and
(iii)
(A)
the broadcasting company terminates the broadcasting employee for
cause; or
(B)
the broadcasting employee breaches the employment contract in a manner that
results in the broadcasting employee no longer being employed by the
broadcasting company.
(b)
A
post-employment restrictive covenant
non-compete agreement
described in
Subsection
(2)(a)
is enforceable for no longer than the earlier of:
(i)
one year after the day on which the broadcasting employee is no longer employed
by the broadcasting company; or
(ii)
the day on which the original term of the employment contract containing the
post-employment restrictive covenant
non-compete agreement
ends.
(c)
A
post-employment restrictive covenant
non-compete agreement
between a
broadcasting company and a broadcasting employee that does not comply with this
subsection
Subsection
(2)
is void.
(3)
Nothing in this section affects an agreement that is not a:
(a)
non-compete agreement; or
(b)
healthcare non-compete agreement.
Section 3. Section
34-51-202
is amended to read:
34-51-202
. Exceptions.
(1)
This chapter does not prohibit

:
(a)
a reasonable severance agreement mutually and freely agreed upon in good faith at or
after the time of termination that includes a
post-employment restrictive covenant. A
severance agreement remains subject to any requirements imposed under common
law.
non-compete agreement or a healthcare non-compete agreement; or
(2)
(b)
This chapter does not prohibit a post-employment restrictive covenant
a
non-compete agreement or a healthcare non-compete agreement
related to or arising
out of the sale of a business, if the individual subject to the
restrictive covenant
non-compete agreement or healthcare non-compete agreement
receives value related
to the sale of the business.
(2)
Notwithstanding Subsection
(1)(a)
, a severance agreement remains subject to any
requirements imposed under common law.
Section 4. Section
34-51-203
is enacted to read:
34-51-203
. Nonsolicitation agreements.
(1)
On or after May 6, 2026, a person and a healthcare worker may not enter into
nonsolicitation agreement that prevents a healthcare worker from informing a patient of
any of the following:
(a)
the healthcare worker's current place of employment; or
(b)
the healthcare worker's future place of employment.
(2)
A nonsolicitation agreement that violates Subsection
(1)
is void.
Section 5. Section
34-51-301
is amended to read:
34-51-301
. Award of arbitration costs, attorney fees and court costs, and
damages.
If an employer seeks to enforce a
post-employment restrictive covenant
non-compete
agreement or healthcare non-compete agreement
through arbitration or by filing a civil action
and it is determined that the
post-employment restrictive covenant
non-compete agreement or
healthcare non-compete agreement
is unenforceable, the employer is liable for the employee's:
(1)
costs associated with arbitration;
(2)
attorney fees and court costs; and
(3)
actual damages.
Section 6. Section
34A-5-114
is amended to read:
34A-5-114
. Limitations on enforceability of nondisclosure and
non-disparagement clauses -- Retaliation prohibited.
(1)
As used in this section:
(a)
"Confidentiality clause" means a nondisclosure clause or a non-disparagement clause.
(b)
"Employee" means a current or a former employee.
(c)
"Nondisclosure clause" means an agreement between an employee and employer that
prevents, or has the effect of preventing, an employee from disclosing or discussing:
(i)
sexual assault;
(ii)
allegations of sexual assault;
(iii)
sexual harassment; or
(iv)
allegations of sexual harassment.
(d)
"Non-compete agreement" means the same as that term is defined in Section
34-51-102
.
(d)
(e)
"Non-disparagement clause" means an agreement between an employee and
employer that prohibits, or has the effect of prohibiting, an employee from making a
negative statement that is:
(i)
about the employer; and
(ii)
related to:
(A)
a claim of sexual assault or sexual harassment;
(B)
a sexual assault dispute; or
(C)
a sexual harassment dispute.
(e)
"Post-employment restrictive covenant" means the same as that term is defined in
Section
34-51-102
.
(f)
"Proprietary information" means an employer's business plan or customer
information.
(g)
"Retaliate" means taking an adverse action against an employee because the
employee made an allegation of sexual harassment or assault, including:
(i)
discharge;
(ii)
suspension;
(iii)
demotion; or
(iv)
discrimination in the terms, conditions, or privileges of employment.
(h)
(i)
"Sexual assault" means:
(A)
conduct that would constitute a violation of 18 U.S.C. Secs. 2241 through
2244; or
(B)
criminal conduct described in Title 76, Chapter 5, Part 4, Sexual Offenses.
(ii)
"Sexual assault" does not include criminal conduct described in:
(A)
Section
76-5-417
, enticing a minor;
(B)
Section
76-5-418
, sexual battery;
(C)
Section
76-5-419
, lewdness; or
(D)
Section
76-5-420
, lewdness involving a child.
(i)
"Sexual assault dispute" means a dispute between an employer and the employer's
employee relating to alleged sexual assault.
(j)
"Sexual harassment" means harassment on the basis of sex, sexual orientation, or
gender, as prohibited in:
(i)
Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sec. 2000e et seq.; or
(ii)
Subsection
34A-5-106(1)(a)(i)
.
(k)
"Sexual harassment dispute" means a dispute between an employer and the
employer's employee relating to alleged sexual harassment.
(2)
(a)
A confidentiality clause regarding sexual misconduct, as a condition of
employment, is against public policy and is void and unenforceable.
(b)
After an employee makes an allegation of sexual harassment or sexual assault, an
employer of any sized business, regardless of Subsection
34-5-102(1)(i)(D)
:
(i)
may not retaliate against the employee because the employee made an allegation
of sexual harassment or assault; or
(ii)
may not retaliate based on an employee's refusal to enter into a confidentiality
clause or an employment contract that, as a condition of employment, contains a
confidentiality clause.
(c)
An employee may, within three business days after the day on which the employee
agrees to a settlement agreement that includes a confidentiality clause regarding
sexual misconduct, withdraw from the settlement agreement.
(3)
An employer who attempts to enforce a confidentiality clause in violation of this section:
(a)
is liable for all costs, including reasonable attorney fees, resulting from legal action
to enforce the confidentiality clause; and
(b)
is not entitled to monetary damages resulting from a breach of a confidentiality
clause.
(4)
This section does not:
(a)
prohibit an agreement between an employee who alleges sexual assault or sexual
harassment and an employer from containing a nondisclosure clause, a
non-disparagement clause, or any other clause prohibiting disclosure of:
(i)
the amount of a monetary settlement; or
(ii)
at the request of the employee, facts that could reasonably lead to the
identification of the employee;
(b)
prohibit an employer from requiring an employee to:
(i)
sign a
post-employment restrictive covenant
non-compete agreement
; or
(ii)
agree not to disclose an employer's non-public trade secrets, proprietary
information, or confidential information that does not involve illegal acts;
(c)
authorize an employee to:
(i)
disclose data otherwise protected by law or legal privilege; or
(ii)
knowingly make statements or disclosures that are false or made with reckless
disregard of the truth;
(d)
prohibit an employee from discussing sexual misconduct or allegations of sexual
misconduct in a civil or criminal case when subpoenaed if the sexual misconduct or
allegations of sexual misconduct are against the individual whom the employee
alleged engaged in sexual misconduct;
(e)
permit a disclosure that would violate state or federal law; or
(f)
limit other grounds that may exist at law or in equity for the unenforceability of a
confidentiality clause.
Section 7.
Repealer.
Title.
Section 8.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-11-26 11:19 AM