HB 203 Utah House · 2026 General Session

Non-Compete Amendments

HB 203 amends Utah's non-compete agreement laws to provide stronger protections for workers. It prohibits employers from enforcing non-compete agreements against nonexempt employees (those not earning at least $913/week), students in internships, workers under 18, and employees earning under $155,000 annually. The bill requires employers to provide written non-compete notices at least 14 days before an employee starts work or the agreement takes effect, and makes agreements void if these requirements aren't met. It also bans enforcement against independent contractors and grants workers the right to sue if employers attempt to enforce unlawful agreements.

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 20, 2026 Last action Mar 7, 2026

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What changed between versions

Introduced → Substitute #1 · 6 edits

MODERATE

This bill updates Utah's non-compete laws to ban agreements against most employees starting May 6, 2026, while creating a specific exception for broadcasting industry workers. It also raises the annual earnings threshold for protection from $100,000 to $155,000 and adds new rules requiring employers to provide advance notice and include a 'garden leave' clause in employment offers.

Scope change

The bill significantly narrows the scope of enforceable non-compete agreements by adding exemptions for students, minors, and low-earning workers, but introduces a new category of enforceable non-competes specifically for broadcasting employees under strict conditions.

ELIGIBILITY

Raised the annual earnings threshold for employee protection from $100,000 to $155,000.

Added new exemptions prohibiting non-competes for students, minors (18 or younger), and employees terminated due to a reduction in force.

REQUIREMENT

Mandated that employers must provide employees with at least 14 days of advance notice before a non-compete agreement becomes effective.

Required employers to include a 'garden leave clause' in employment offers, which pays the employee 100% of their annual compensation for the year the agreement is in effect.

SCOPE

Created a new exception allowing non-competes for 'broadcasting employees' if they are high earners, the agreement is in a written contract, and termination is for cause.

DEFINITION

Refined the definition of 'non-compete agreement' to focus on restricting an employee from working in a similar product, process, or service rather than a broad list of activities.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 2, 2026

Lower · Passed

House/ comm rpt/ substituted [House Business, Labor, and Commerce Committee]

lower

Jan 30, 2026

Lower · Passed

House Comm - Favorable Recommendation [House Business, Labor, and Commerce Committee]

lower

Jan 27, 2026

Lower · Passed

House Comm - Not Considered [House Business, Labor, and Commerce Committee]

lower

Jan 22, 2026

Committee

House/ to standing committee [House Business, Labor, and Commerce Committee]

lower

Jan 20, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor