clock menu more-arrow no yes

Filed under:

Noncompete clauses

Regarding the legislative proposal to prohibit noncompete agreements between Utah employers and employees, you mentioned California prohibits such agreements. As an attorney who formerly practiced business law in California, I frequently explained this prohibition to out-of-state companies establishing offices in California.

Since California became a state, it has prohibited such agreements. The narrow exceptions to this prohibition would never apply to a standard employer-employee relationship.

While I don’t agree with everything that California does, a ban on noncompete agreements hasn't stifled the development of many organizations that rely on employee intelligence, intellectual property and trade secrets for the success of their businesses.

Noncompete agreements can be and are used for abuse of employees. Under most noncompete agreements, even if an employee is fired, he/she can’t work for a competitor. If an employee is subject to an abusive and harmful workplace, he/she can’t work for a competitor. If a competitor offers to double an employee’s salary, the employee can’t accept the job.

Utah's business future will be brighter if businesses compete for the best employees and employees work where they are most appreciated.

David Vandagriff