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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the enforceability of certain agreements.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies the permissible duration of an employment contract that contains a
13 post-employment restrictive covenant for a broadcasting employee; and
14 ▸ limits the enforcement of an agreement or stipulation to confess judgment.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 34-51-201, as last amended by Laws of Utah 2018, Chapter 465
22 ENACTS:
23 78B-22-101, Utah Code Annotated 1953
24 78B-22-102, Utah Code Annotated 1953
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26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 34-51-201 is amended to read:
28 34-51-201. Post-employment restrictive covenants.
29 (1) Except as provided in Subsection (2) and in addition to any requirements imposed
30 under common law, for a post-employment restrictive covenant entered into on or after May
31 10, 2016, an employer and an employee may not enter into a post-employment restrictive
32 covenant for a period of more than one year from the day on which the employee is no longer
33 employed by the employer. A post-employment restrictive covenant that violates this
34 subsection is void.
35 (2) (a) Subject to Subsection (2)(b), a post-employment restrictive covenant between a
36 broadcasting company and a broadcasting employee is valid only if:
37 (i) the broadcasting employee is an exempt broadcasting employee;
38 (ii) the post-employment restrictive covenant is part of a written employment contract
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40 the position, the broadcasting employee's experience, geography, and the parties' unique
41 circumstances; and
42 (iii) (A) the broadcasting company terminates the broadcasting employee for cause; or
43 (B) the broadcasting employee breaches the employment contract in a manner that
44 results in the broadcasting employee no longer being employed by the broadcasting company.
45 (b) A post-employment restrictive covenant described in Subsection (2)(a) is
46 enforceable for no longer than the earlier of:
47 (i) one year after the day on which the broadcasting employee is no longer employed by
48 the broadcasting company; or
49 (ii) the day on which the original term of the employment contract containing the
50 post-employment restrictive covenant ends .
51 (c) A post-employment restrictive covenant between a broadcasting company and a
52 broadcasting employee that does not comply with this subsection is void.
53 Section 2. Section 78B-22-101 is enacted to read:
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55 78B-22-101. Definitions.
56 Reserved
57 Section 3. Section 78B-22-102 is enacted to read:
58 78B-22-102. Certain agreements to confess judgment void.
59 An agreement or stipulation to confess judgment is void if the agreement or stipulation
60 is executed:
61 (1) on or after May 14, 2019; and
62 (2) before a default giving rise to an action in which the judgment under the agreement
63 or stipulation is to be confessed.