Senator Curtis S. Bramble proposes the following substitute bill:




Chief Sponsor: Mike Schultz

Senate Sponsor: Daniel Hemmert


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

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
39     [with a term of no more than four years] of reasonable duration, based on industry standards,
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:
Part 22. Agreements to Confess Judgment

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.