First Substitute S.B. 113

Senator Ed Mayne proposes the following substitute bill:

1 EMPLOYEE NONCOMPETITION CONTRACTS
2 2005 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Ed Mayne
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Judicial Code to address employee noncompetition contracts.
9 Highlighted Provisions:
10 This bill:
11 . provides when noncompetition contracts are unenforceable.
12 Monies Appropriated in this Bill:
13 None
14 Other Special Clauses:
15 None
16 Utah Code Sections Affected:
17 ENACTS:
18 78-27-65, Utah Code Annotated 1953
19
20 Be it enacted by the Legislature of the state of Utah:
21 Section 1. Section 78-27-65 is enacted to read:
22 78-27-65. Employment related to noncompetition contracts.
23 A contract between an employer and an employee that restricts or prohibits the
24 employee from competing with the employer after the employee no longer works for the
25 employer may not be enforced if the employee's employment is terminated pursuant to a

26 reduction in force.

*SB0113S01*