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)"Commission" means the Labor Commission created in Section 34A-1-103.(3)(4)"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.(5)"Garden leave clause" means a provision in a non-compete agreement where, as a condition for the enforcement of the non-compete agreement, an employer agrees to continue to pay an employee 100% of the employee's annual compensation for the year in which the non-compete agreement is in effect.(6)"Nonexempt employee" means an employee who is nonexempt under the requirements of the Fair Labor Standards Act of 1938, 29 U.S.C. 201 et seq.(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 servicesa product, process, or service that areis similar to the employer's products, processes, or servicesproduct, process, or service.(b)"Post-employment restrictive covenant" "Non-compete agreement" does not include:(i) a nonsolicitation agreementsagreement;(ii) or a nondisclosure agreement;(iii) or a confidentiality agreementsagreement; or(iv)a training repayment 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)Except as provided in Subsection (2)(7) and in addition to any requirements imposed under common law, for a post-employment restrictive covenantnon-compete agreement entered into on or after May 10, 2016, an employer and an employee may not enter into a post-employment restrictive covenantnon-compete agreement for a period of more than one year from the day on which the employer no longer employs the employee. is no longer employed by the employer. A post-employment restrictive covenant that violates this subsection is void.(2)An employer may not enforce a non-compete agreement entered into on or after May 6, 2026, against an employee if:(a)the employee is:(i)a nonexempt employee;(ii)a student who is enrolled in a full-time or part-time undergraduate or graduate program while engaging in an internship or other short-term employment with an employer; or(iii)eighteen years old or younger;(b)the employee's total earnings from the employer in the most recent calendar year are less than $155,000;(c)the employer terminates the employee without cause; or(d)the non-compete agreement restricts an employee's ability to work more than 25 miles from a specific geographic location.(3)A person may not enforce a non-compete agreement entered into on or after May 6, 2026, against an independent contractor.(4)(a)Subject to Subsection (5), when making an offer of employment, an employer shall include with the offer of employment to the prospective employee any non-compete agreement the employer intends to enter into with the prospective employee.(b)When including the non-compete agreement with an offer of employment as described in Subsection (4)(a), an employer shall:(i)present the non-compete agreement in a way that a reasonable individual would understand the non-compete agreement;(ii)provide, in the offer of employment or contract, a statutory reference to this section;(iii)include a garden leave clause in the non-compete agreement; and(iv)present the garden leave clause in a way that a reasonable individual would understand the garden leave clause.(5)Before entering into a non-compete agreement with an employee, an employer shall provide to the employee a written notice of the non-compete agreement at least 14 calendar days before the earlier of the day on which:(a)the employee begins working for the employer; or(b)the non-compete agreement becomes effective.(6)(a)A non-compete agreement that violates Subsections (1) through (3) is void.(b)An employer that does not comply with the requirements of Subsections (4) and (5) may not enforce the provisions of a non-compete agreement.(2)(7)(a)Subject to Subsection (2)(b)(7)(b), a post-employment restrictive covenantnon-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 covenantnon-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 covenantnon-compete agreement described in Subsection (2)(a)(7)(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 covenantnon-compete agreement ends.(c)A post-employment restrictive covenantnon-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this subsectionSubsection (7) is void.(8)(a)The commission may investigate a reported violation of this section.(b)If the commission investigates an alleged violation of this section and determines that a person has violated this section, the commission shall issue a fee to the person for up to $10,000 per violation.

Section 3, Section 34-51-202 is amended to read:34-51-202. Non-compete agreements -- Exceptions.(1)This chapter does not prohibit or affect:(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(2)(b)This chapter does not prohibit a post-employment restrictive covenanta non-compete agreement related to or arising out of the sale of a business, if the individual subject to the restrictive covenantnon-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 34-51-301 is amended to read:34-51-301. Award of arbitration costs, attorney fees and court costs, and damages.(1)If an employer seeks to enforce a post-employment restrictive covenantnon-compete agreement through arbitration or by filing a civil action and it is determinedthe arbitrator determines that the post-employment restrictive covenant is unenforceable, the employer is liable for the employee'snon-compete agreement violates this chapter, the arbitrator shall award the employee:(1)(a)costs associated with arbitration; and(2)attorney fees and court costs; and(3)(b)actual damages. (2)(a)An employee or independent contractor has a right of action against a person that seeks to enforce a non-compete agreement that violates this chapter if the employee is a party to the non-compete agreement.(b)If an individual brings an action against a person in accordance with Subsection (2)(a), and a court finds that the non-compete agreement violates this chapter, the court shall award the individual:(i)actual damages;(ii)injunctive relief;(iii)costs associated with arbitration; and(iv)reasonable costs and attorney fees.

Section 5, Repealer.Title.

Section 6. Effective Date.This bill takes effect on May 6, 2026.