§ 34-51-201 — Post-employment restrictive covenants.

(1) Except as provided in Subsection (2) and in addition to any requirements imposed under common law, for a post-employment restrictive covenant entered into on or after May 10, 2016, an employer and an employee may not enter into a post-employment restrictive covenant for a period of more than one year from the day on which the employee is no longer employed by the employer. A post-employment restrictive covenant that violates this subsection is void.
(2) (2)(a) Subject to Subsection (2)(b), a post-employment restrictive covenant between a broadcasting company and a broadcasting employee is valid only if:
(2)(a)(i) the broadcasting employee is an exempt broadcasting employee;
(2)(a)(ii) the post-employment restrictive covenant is part of a written employment contract of reasonable duration, based on industry standards, the position, the broadcasting employee's experience, geography, and the parties' unique circumstances; and
(2)(a)(iii) (2)(a)(iii)(A) the broadcasting company terminates the broadcasting employee for cause; or
(2)(a)(iii)(B) the broadcasting employee breaches the employment contract in a manner that results in the broadcasting employee no longer being employed by the broadcasting company.
(2)(b) A post-employment restrictive covenant described in Subsection (2)(a) is enforceable for no longer than the earlier of:
(2)(b)(i) one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or
(2)(b)(ii) the day on which the original term of the employment contract containing the post-employment restrictive covenant ends.
(2)(c) A post-employment restrictive covenant between a broadcasting company and a broadcasting employee that does not comply with this subsection is void.

Legislative History

Amended by Chapter 132, 2019 General Session