HB 270

Enrolled Copy  H.B. 270
1Healthcare Worker Post-employment Amendments
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Katy Hall
  Senate Sponsor: Brady Brammer
2
3  LONG TITLE
4  General Description:
5      This bill amends provisions relating to a non-compete agreement for a healthcare worker.
6  Highlighted Provisions:
7      This bill:
8      ▸ defines terms;
9      ▸ makes void a non-compete agreement entered into between an employer and a healthcare
10  worker;
11      ▸ makes void a nonsolicitation agreement between a person and a healthcare worker under
12  certain circumstances; and
13      ▸ makes technical changes.
14  Money Appropriated in this Bill:
15      None
16  Other Special Clauses:
17      None
18  Utah Code Sections Affected:
19  AMENDS:
20      34-51-102, as last amended by Laws of Utah 2018, Chapter 465
21      34-51-201, as last amended by Laws of Utah 2019, Chapter 132
22      34-51-202, as enacted by Laws of Utah 2016, Chapter 153
23      34-51-301, as enacted by Laws of Utah 2016, Chapter 153
24      34A-5-114, as last amended by Laws of Utah 2025, Chapters 173, 425
25  ENACTS:
26      34-51-203, Utah Code Annotated 1953
27  REPEALS:
H.B. 270  Enrolled Copy
2834-51-101, as enacted by Laws of Utah 2016, Chapter 153
29
30   Be it enacted by the Legislature of the state of Utah:
31Section 1. Section 34-51-102 is amended to read:
3234-51-102 . Definitions.
33      As used in this chapter:
34   (1) "Broadcasting employee" means an employee of a broadcasting company.
35   (2) "Broadcasting company" means a person engaged in the business of:
36(a) distributing or transmitting electronic or electromagnetic signals to the general public
37using one or more of the following:
38(i) television;
39(ii) cable; or
40(iii) radio; or
41(b) preparing, developing, or creating one or more programs or messages for distribution
42or transmission by means described in Subsection (2)(a).
43   (3) "Exempt broadcasting employee" means a broadcasting employee who is compensated
44on a salary basis, as defined in 29 C.F.R. Sec. 541.602, at a rate equal to or greater than
45the greater of:
46(a) $913 per week, or an equivalent amount if calculated for a period longer than one
47week; or
48(b) the rate at which an employee qualifies as exempt under the Fair Labor Standards
49Act, 29 U.S.C. Sec. 213(a) on a salary basis as defined in 29 C.F.R. Part 541.
50   (4) "Healthcare non-compete agreement" means an agreement between a person and a
51healthcare worker within which the healthcare worker agrees that, after the day on which
52the healthcare worker no longer works for or with the person, the healthcare worker will
53not engage in a service that the healthcare worker may provide under the scope of the
54healthcare worker's license:
55(a) for a restricted period of time; or
56(b) within a specific geographic area.
57   (5)(a) "Healthcare worker" means an individual licensed and practicing as:
58(i) an advanced practice registered nurse intern under Title 58, Chapter 31b, Nurse
59Practice Act;
60(ii) an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
61Act;
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62(iii) an advanced practice registered nurse - CRNA without prescriptive practice
63under Title 58, Chapter 31b, Nurse Practice Act;
64(iv) an associate marriage and family therapist under Section 58-60-304;
65(v) a behavioral health coach under Section 58-60-603;
66(vi) a behavioral health technician under Section 58-60-603;
67(vii) a certified dietitian as that term is defined in Section 58-49-2;
68(viii) a certified psychology resident under Title 58, Chapter 60, Part 4, Clinical
69Mental Health Counselor Licensing Act;
70(ix) a certified social worker under Title 58, Chapter 60, Part 2, Social Worker
71Licensing Act;
72(x) a clinical mental health counselor under Title 58, Chapter 60, Part 4, Clinical
73Mental Health Counselor Licensing Act;
74(xi) a clinical social worker under Title 58, Chapter 60, Part 2, Social Worker
75Licensing Act;
76(xii) a dentist as that term is defined in Section 58-69-102;
77(xiii) a genetic counselor as that term is defined in Section 58-75-102;
78(xiv) a licensed assistant behavior analyst under Title 58, Chapter 61, Part 7,
79Behavior Analyst Licensing Act;
80(xv) a licensed behavior analyst under Title 58, Chapter 61, Part 7, Behavior Analyst
81Licensing Act;
82(xvi) a licensed massage therapist as that term is defined in Section 58-47b-102;
83(xvii) a licensed practical nurse under Title 58, Chapter 31b, Nurse Practice Act;
84(xviii) a marriage and family therapist under Section 58-60-304;
85(xix) a medication aide certified as that term is defined in Section 58-31b-102;
86(xx) a mental health therapist as that term is defined in Section 58-60-102;
87(xxi) a naturopathic physician as that term is defined in Section 58-71-102;
88(xxii) a nurse midwife as that term is defined in Section 58-44a-102;
89(xxiii) an optometrist as that term is defined in Section 58-16a-102;
90(xxiv) a physical therapist under Section 58-24b-302;
91(xxv) a physician as that term is defined in Section 58-68-102;
92(xxvi) a physician assistant as that term is defined in Section 58-70a-102;
93(xxvii) a psychologist under Section 58-61-301;
94(xxviii) a podiatric physician under Section 58-5a-301;
95(xxix) a radiology practitioner as that term is defined in Section 58-54-102;
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96(xxx) a registered nurse under Title 58, Chapter 31b, Nurse Practice Act;
97(xxxi) a respiratory care practitioner as that term is defined in Section 58-57-2;
98(xxxii) a social service worker under Title 58, Chapter 60, Part 2, Social Worker
99Licensing Act; or
100(xxxiii) a substance use disorder counselor under Title 58, Chapter 60, Part 5,
101Substance Use Disorder Counselor Act.
102(b) "Healthcare worker" does not include an individual:
103(i) who holds a license described in Subsection (5)(a)(i) through (xxxiii); and
104(ii) whose employment or contractual agreement does not require or involve
105practicing under the scope of the individual's license.
106   (6) "Nonsolicitation agreement" means an agreement, between a person and an individual
107who works for or with the person, in which the individual agrees that on or after the day
108on which the individual no longer works for or with the person, the individual will not
109solicit the person's clients, customers, or employees.
110   [(4)] (7)(a) ["Post-employment restrictive covenant," also known as a "covenant not to
111compete" or "noncompete agreement," ] "Non-compete agreement" means an
112agreement, written or oral, between an employer and employee under which the
113employee agrees that on or after the day on which the employer no longer employs
114the employee, the employee, either alone or as an employee of another person, will
115not compete with the employer in providing [products, processes, or services] a
116product, process, or service that [are] is similar to the employer's [products, processes,
117or services] product, process, or service.
118(b) ["Post-employment restrictive covenant" ] "Non-compete agreement" does not include[
119nonsolicitation agreements or nondisclosure or confidentiality agreements.] :
120(i) a nonsolicitation agreement;
121(ii) a nondisclosure agreement; or
122(iii) a confidentiality agreement.
123   [(5)] (8) "Sale of a business" means a transfer of the ownership by sale, acquisition, merger,
124or other method of the tangible or intangible assets of a business entity, or a division or
125segment of the business entity.
126Section 2. Section 34-51-201 is amended to read:
12734-51-201 . Non-compete agreements.
128   (1)(a) Except as provided in Subsection (2) and in addition to any requirements imposed
129under common law, for a [post-employment restrictive covenant] non-compete
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130      agreement entered into on or after May 10, 2016, an employer and an employee may
131      not enter into a [post-employment restrictive covenant] non-compete agreement for a
132      period of more than one year from the day on which the employee is no longer
133      employed by the employer.
134      (b) On or after May 6, 2026, a person and a healthcare worker may not enter into a
135healthcare non-compete agreement.
136      (c) [ ]A [post-employment restrictive covenant] non-compete agreement that violates this [
137subsection] Subsection (1) is void.
138  (2)(a) Subject to Subsection (2)(b), a [post-employment restrictive covenant]
139      non-compete agreement between a broadcasting company and a broadcasting
140      employee is valid only if:
141(i) the broadcasting employee is an exempt broadcasting employee;
142(ii) the [post-employment restrictive covenant] non-compete agreement is part of a
143written employment contract of reasonable duration, based on industry standards,
144the position, the broadcasting employee's experience, geography, and the parties'
145unique circumstances; and
146(iii)(A) the broadcasting company terminates the broadcasting employee for
147cause; or
148(B) the broadcasting employee breaches the employment contract in a manner that
149results in the broadcasting employee no longer being employed by the
150broadcasting company.
151      (b) A [post-employment restrictive covenant] non-compete agreement described in
152Subsection (2)(a) is enforceable for no longer than the earlier of:
153(i) one year after the day on which the broadcasting employee is no longer employed
154by the broadcasting company; or
155(ii) the day on which the original term of the employment contract containing the [
156post-employment restrictive covenant] non-compete agreement ends.
157      (c) A [post-employment restrictive covenant] non-compete agreement between a
158broadcasting company and a broadcasting employee that does not comply with this [
159subsection] Subsection (2) is void.
160  (3) Nothing in this section affects an agreement that is not a:
161      (a) non-compete agreement; or
162      (b) healthcare non-compete agreement.
163Section 3. Section 34-51-202 is amended to read:
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16434-51-202 . Exceptions.
165   (1) This chapter does not prohibit[ ] :
166(a) a reasonable severance agreement mutually and freely agreed upon in good faith at or
167after the time of termination that includes a [post-employment restrictive covenant. A
168severance agreement remains subject to any requirements imposed under common
169law.] non-compete agreement or a healthcare non-compete agreement; or
170[(2)] (b) [This chapter does not prohibit a post-employment restrictive covenant] a
171non-compete agreement or a healthcare non-compete agreement related to or arising
172out of the sale of a business, if the individual subject to the [restrictive covenant]
173non-compete agreement or healthcare non-compete agreement receives value related
174to the sale of the business.
175   (2) Notwithstanding Subsection (1)(a), a severance agreement remains subject to any
176requirements imposed under common law.
177Section 4. Section 34-51-203 is enacted to read:
17834-51-203 . Nonsolicitation agreements.
179   (1) On or after May 6, 2026, a person and a healthcare worker may not enter into
180nonsolicitation agreement that prevents a healthcare worker from informing a patient of
181any of the following:
182(a) the healthcare worker's current place of employment; or
183(b) the healthcare worker's future place of employment.
184   (2) A nonsolicitation agreement that violates Subsection (1) is void.
185Section 5. Section 34-51-301 is amended to read:
18634-51-301 . Award of arbitration costs, attorney fees and court costs, and
187   damages.
188      If an employer seeks to enforce a [post-employment restrictive covenant] non-compete
189   agreement or healthcare non-compete agreement through arbitration or by filing a civil action
190   and it is determined that the [post-employment restrictive covenant] non-compete agreement or
191   healthcare non-compete agreement is unenforceable, the employer is liable for the employee's:
192   (1) costs associated with arbitration;
193   (2) attorney fees and court costs; and
194   (3) actual damages.
195Section 6. Section 34A-5-114 is amended to read:
19634A-5-114 . Limitations on enforceability of nondisclosure and
197   non-disparagement clauses -- Retaliation prohibited.
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198  (1) As used in this section:
199      (a) "Confidentiality clause" means a nondisclosure clause or a non-disparagement clause.
200      (b) "Employee" means a current or a former employee.
201      (c) "Nondisclosure clause" means an agreement between an employee and employer that
202prevents, or has the effect of preventing, an employee from disclosing or discussing:
203(i) sexual assault;
204(ii) allegations of sexual assault;
205(iii) sexual harassment; or
206(iv) allegations of sexual harassment.
207      (d) "Non-compete agreement" means the same as that term is defined in Section
20834-51-102.
209      [(d)] (e) "Non-disparagement clause" means an agreement between an employee and
210employer that prohibits, or has the effect of prohibiting, an employee from making a
211negative statement that is:
212(i) about the employer; and
213(ii) related to:
214(A) a claim of sexual assault or sexual harassment;
215(B) a sexual assault dispute; or
216(C) a sexual harassment dispute.
217      [(e) "Post-employment restrictive covenant" means the same as that term is defined in
218Section 34-51-102.]
219      (f) "Proprietary information" means an employer's business plan or customer
220information.
221      (g) "Retaliate" means taking an adverse action against an employee because the
222employee made an allegation of sexual harassment or assault, including:
223(i) discharge;
224(ii) suspension;
225(iii) demotion; or
226(iv) discrimination in the terms, conditions, or privileges of employment.
227      (h)(i) "Sexual assault" means:
228(A) conduct that would constitute a violation of 18 U.S.C. Secs. 2241 through
2292244; or
230(B) criminal conduct described in Title 76, Chapter 5, Part 4, Sexual Offenses.
231(ii) "Sexual assault" does not include criminal conduct described in:
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232(A) Section 76-5-417, enticing a minor;
233(B) Section 76-5-418, sexual battery;
234(C) Section 76-5-419, lewdness; or
235(D) Section 76-5-420, lewdness involving a child.
236(i) "Sexual assault dispute" means a dispute between an employer and the employer's
237employee relating to alleged sexual assault.
238(j) "Sexual harassment" means harassment on the basis of sex, sexual orientation, or
239gender, as prohibited in:
240(i) Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sec. 2000e et seq.; or
241(ii) Subsection 34A-5-106(1)(a)(i).
242(k) "Sexual harassment dispute" means a dispute between an employer and the
243employer's employee relating to alleged sexual harassment.
244   (2)(a) A confidentiality clause regarding sexual misconduct, as a condition of
245employment, is against public policy and is void and unenforceable.
246(b) After an employee makes an allegation of sexual harassment or sexual assault, an
247employer of any sized business, regardless of Subsection 34-5-102(1)(i)(D):
248(i) may not retaliate against the employee because the employee made an allegation
249of sexual harassment or assault; or
250(ii) may not retaliate based on an employee's refusal to enter into a confidentiality
251clause or an employment contract that, as a condition of employment, contains a
252confidentiality clause.
253(c) An employee may, within three business days after the day on which the employee
254agrees to a settlement agreement that includes a confidentiality clause regarding
255sexual misconduct, withdraw from the settlement agreement.
256   (3) An employer who attempts to enforce a confidentiality clause in violation of this section:
257(a) is liable for all costs, including reasonable attorney fees, resulting from legal action
258to enforce the confidentiality clause; and
259(b) is not entitled to monetary damages resulting from a breach of a confidentiality
260clause.
261   (4) This section does not:
262(a) prohibit an agreement between an employee who alleges sexual assault or sexual
263harassment and an employer from containing a nondisclosure clause, a
264non-disparagement clause, or any other clause prohibiting disclosure of:
265(i) the amount of a monetary settlement; or
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266(ii) at the request of the employee, facts that could reasonably lead to the
267identification of the employee;
268      (b) prohibit an employer from requiring an employee to:
269(i) sign a [post-employment restrictive covenant] non-compete agreement; or
270(ii) agree not to disclose an employer's non-public trade secrets, proprietary
271information, or confidential information that does not involve illegal acts;
272      (c) authorize an employee to:
273(i) disclose data otherwise protected by law or legal privilege; or
274(ii) knowingly make statements or disclosures that are false or made with reckless
275disregard of the truth;
276      (d) prohibit an employee from discussing sexual misconduct or allegations of sexual
277misconduct in a civil or criminal case when subpoenaed if the sexual misconduct or
278allegations of sexual misconduct are against the individual whom the employee
279alleged engaged in sexual misconduct;
280      (e) permit a disclosure that would violate state or federal law; or
281      (f) limit other grounds that may exist at law or in equity for the unenforceability of a
282confidentiality clause.
283Section 7. Repealer.
284This bill repeals:
285Section 34-51-101, Title.
286Section 8. Effective Date.
287  This bill takes effect on May 6, 2026.
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