Labor & Employment

HB 270 voids non-compete agreements between employers and licensed healthcare workers in Utah, effective May 6, 2026. It specifically targets agreements that restrict healthcare workers - such as nurses, doctors, therapists, and counselors - from practicing in certain areas or for specific time periods after leaving a job. The bill also makes void certain nonsolicitation agreements between employers and healthcare workers under defined circumstances. This applies to all 35+ licensed healthcare professions listed in the bill, including advanced practice nurses, psychologists, and physical therapists, without creating new financial obligations.

SB 229 modifies Utah state employee benefits by replacing separate annual and sick leave with a single paid time off (PTO) system. It requires agencies to convert accrued leave hours to PTO at a 1:1 ratio, grants the Division of Human Resources authority to set PTO rules, and expands postpartum recovery leave for eligible employees. The bill also adds parental leave eligibility for State Board of Education employees and adjusts 401(k) match rates and maximum employer contributions for specified employees. These changes directly affect all Utah state employees covered under the modified benefit provisions, with no new funding required.

SB 111 prohibits most non-compete agreements between veterinarians and their employers in Utah after May 6, 2026, making such agreements unenforceable. It allows exceptions if a veterinarian owns at least 5% of the business. The bill also voids clauses requiring disputes over these agreements to be resolved outside Utah and invalidates certain nonsolicitation or nondisclosure clauses for veterinarians. This directly affects veterinarians and businesses employing them by limiting restrictive employment contracts. The law takes effect on May 6, 2026, with no funding impact.

This bill changes Utah's wage law by setting a one-year time limit for employees to sue employers over unpaid wages exceeding $10,000. For claims under $10,000, employees must first use administrative processes before filing a lawsuit, unless they combine claims (with other employees or additional claims against the same employer) totaling over $10,000. The law also adds daily penalties of 2.5% for unpaid wages after a court order. It directly affects employees seeking unpaid wages and employers who owe them. The bill takes effect May 6, 2026.