<section number="34-51-201"><effdate>5/6/2026</effdate><histories><history>Amended by Chapter <modchap sess="2026GS">341</modchap>, 2026 General Session</history><modyear>2026</modyear></histories><catchline>Non-compete agreements.</catchline><subsection number="34-51-201(1)"><subsection number="34-51-201(1)(a)">Except as provided in Subsection <xref depth="4" refnumber="34-51-201(2)" start="0">(2)</xref> and in addition to any requirements imposed under common law, for a non-compete agreement entered into on or after May 10, 2016, an employer and an employee may not enter into a 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.</subsection><subsection number="34-51-201(1)(b)">On or after May 6, 2026, a person and a healthcare worker may not enter into a healthcare non-compete agreement.</subsection><subsection number="34-51-201(1)(c)">A non-compete agreement that violates this Subsection <xref depth="4" refnumber="34-51-201(1)">(1)</xref> is void.</subsection></subsection><subsection number="34-51-201(2)"><subsection number="34-51-201(2)(a)">Subject to Subsection <xref depth="4" refnumber="34-51-201(2)(b)" start="0">(2)(b)</xref>, a non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:<subsection number="34-51-201(2)(a)(i)">the broadcasting employee is an exempt broadcasting employee;</subsection><subsection number="34-51-201(2)(a)(ii)">the 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</subsection><subsection number="34-51-201(2)(a)(iii)"><subsection number="34-51-201(2)(a)(iii)(A)">the broadcasting company terminates the broadcasting employee for cause; or</subsection><subsection number="34-51-201(2)(a)(iii)(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.</subsection></subsection></subsection><subsection number="34-51-201(2)(b)">A non-compete agreement described in Subsection <xref depth="4" refnumber="34-51-201(2)(a)" start="0">(2)(a)</xref> is enforceable for no longer than the earlier of:<subsection number="34-51-201(2)(b)(i)">one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or</subsection><subsection number="34-51-201(2)(b)(ii)">the day on which the original term of the employment contract containing the non-compete agreement ends.</subsection></subsection><subsection number="34-51-201(2)(c)">A non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this Subsection <xref depth="4" refnumber="34-51-201(2)">(2)</xref> is void.</subsection></subsection><subsection number="34-51-201(3)"><subsection number="34-51-201(3)(a)">Subject to Subsection <xref depth="4" refnumber="34-51-201(3)(b)">(3)(b)</xref>, on or after May 6, 2026, a person and a veterinarian may not enter into a veterinarian non-compete agreement.</subsection><subsection number="34-51-201(3)(b)">Subsection <xref depth="4" refnumber="34-51-201(3)(a)">(3)(a)</xref> does not apply if the veterinarian has at least a 5% ownership interest in the person's business.</subsection><subsection number="34-51-201(3)(c)">A veterinarian non-compete agreement that violates this Subsection <xref depth="4" refnumber="34-51-201(3)">(3)</xref> is void.</subsection></subsection><subsection number="34-51-201(4)">If a provision in a veterinarian non-compete agreement entered into on or after May 6, 2026, requires that the parties to a dispute arising under the veterinarian non-compete agreement resolve the dispute in a forum outside of this state, the provision:<subsection number="34-51-201(4)(a)">is void and unenforceable; and</subsection><subsection number="34-51-201(4)(b)">is considered against the public policy of this state.</subsection></subsection><subsection number="34-51-201(5)">Nothing in this section affects an agreement that is not a:<subsection number="34-51-201(5)(a)">non-compete agreement;</subsection><subsection number="34-51-201(5)(b)">healthcare non-compete agreement; or</subsection><subsection number="34-51-201(5)(c)">veterinarian non-compete agreement.</subsection></subsection></section>