State Law

Utah Code-Title 34-Chapter 51-Part 1. General Provisions

08/25/2023 Utah Section 34-51-102


Restrictive Covenants

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)(a) “Post-employment restrictive covenant,” also known as a “covenant not to compete” or “noncompete agreement,” means an agreement, written or oral, between an employer and employee under which the employee agrees that the employee, either alone or as an employee of another person, will not compete with the employer in providing products, processes, or services that are similar to the employer’s products, processes, or services.

(b) “Post-employment restrictive covenant” does not include nonsolicitation agreements or nondisclosure or confidentiality agreements.

(5) “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.