UtahUtah bars healthcare non-compete agreements for covered workers
Utah law bars healthcare non-compete agreements for covered workers and protects their ability to tell patients where they work.
What it does
People may not enter into agreements that stop covered healthcare workers from providing licensed services after leaving a job. Exceptions cover some severance agreements and business sales.
Agreements may not stop healthcare workers from telling patients where they work now or where they will work next.
If an employer tries to enforce a covered non-compete agreement and it is found unenforceable, the employer must pay the employee's legal costs and actual damages.
Argument forHealthcare workers could keep serving patients after changing jobs and tell patients where they work, while limited sale and severance agreements remain possible.
Argument againstEmployers may have fewer ways to keep covered healthcare workers from joining competitors, except in some severance agreements or business sales.
More detail
A person may not enter into a healthcare non-compete agreement with a covered healthcare worker. This covers licensed workers practicing within their license scope in the listed healthcare professions. It excludes people whose work does not involve practicing under their license. A reasonable severance agreement freely made in good faith at or after termination may include a healthcare non-compete agreement. An agreement related to a business sale may be allowed if the worker receives value related to the sale. The restriction applies to agreements entered into on or after May 6, 2026.
A person may not make a healthcare worker promise not to tell patients where the worker works now or will work next. This applies to agreements between a person and a healthcare worker. The restriction covers only agreements that prevent the worker from informing patients of a current or future workplace. The restriction applies to agreements entered into on or after May 6, 2026.
An employer must pay an employee's arbitration costs, attorney fees, court costs, and actual damages when the employer tries to enforce an unenforceable covered agreement. This applies when an employer seeks to enforce a non-compete agreement or healthcare non-compete agreement against an employee. The employer must have sought enforcement through arbitration or a civil court action, and the agreement must be found unenforceable.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 24Governor Spencer Cox SignedBecame Law
- Mar 12House/ to GovernorTo Governor
- Mar 12House/ received enrolled bill from PrintingMinor
- Mar 11House/ enrolled bill to Printing
- Mar 11Enrolled Bill Returned to House or SenateMinor
- Mar 7Draft of Enrolled Bill Prepared
- Mar 7Bill Received from House for EnrollingMinor
- Mar 6House/ signed by Speaker/ sent for enrollingMajor
- Vote recorded House/ concurs with Senate amendment. Result: pass.Lower
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House
- Mar 6Senate/ signed by President/ returned to HouseMajor
- Mar 6Senate/ received from HouseMinor
- Mar 6House/ to Senate
- Mar 6House/ concurs with Senate amendmentMajor
- Mar 5House/ placed on Concurrence Calendar
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 5House/ received from SenateMinor
- Mar 5Senate/ to House with amendments
- Mar 5Senate/ passed 2nd & 3rd readings/ suspensionPassed Senate
- Mar 5Senate/ 2nd & 3rd readings/ suspensionMinor
- Mar 5Senate/ Rules to 2nd Reading Calendar
- Mar 5Senate/ 2nd Reading Calendar to Rules [Senate Rules Committee]Minor
- Feb 27Senate/ placed on 2nd Reading Calendar
- Feb 27Senate/ comm rpt/ amended [Senate Business and Labor Committee]Major
- Feb 27Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]Minor
- Feb 27Senate Comm - Amendment Recommendation [Senate Business and Labor Committee]Minor
- Feb 25Senate/ to standing committee [Senate Business and Labor Committee]Minor
- Feb 17Senate/ 1st reading (Introduced)Minor
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Feb 17Senate/ received from HouseMinor
- Feb 17House/ to Senate
- Feb 17House/ passed 3rd readingPassed House
- Feb 17House/ 3rd readingMinor
- Feb 5House/ placed back on 3rd Reading Calendar
- Feb 5LFA/ fiscal note publicly available for HB0270S02
- Feb 5LFA/ fiscal note publicly available for HB0270S01
- Feb 5House/ 2nd readingMinor
- Feb 5House/ comm rpt/ substituted/ Consent Calendar [House Health and Human Services Committee]
- Feb 5LFA/ fiscal note sent to sponsor for HB0270S02
- Feb 5House Comm - Consent Calendar Recommendation [House Health and Human Services Committee]
- Feb 5House Comm - Favorable Recommendation [House Health and Human Services Committee]Minor
- Feb 5House Comm - Substitute Recommendation [House Health and Human Services Committee]Major
- Feb 4LFA/ bill sent to agencies for fiscal input for HB0270S02
- Feb 4LFA/ bill assigned to staff for fiscal analysis for HB0270S02
- Feb 4LFA/ fiscal note sent to sponsor for HB0270S01
- Feb 3House/ lifted from standing committee [House Health and Human Services Committee]
- Feb 3LFA/ bill sent to agencies for fiscal input for HB0270S01
- Feb 3LFA/ bill assigned to staff for fiscal analysis for HB0270S01
- Jan 27House Comm - Not Considered [House Business, Labor, and Commerce Committee]
- Jan 22House/ to standing committee [House Business, Labor, and Commerce Committee]Minor
- Jan 20House/ 1st reading (Introduced)Minor
- Jan 20House/ received fiscal note from Fiscal AnalystMinor
- Jan 20LFA/ fiscal note publicly available for HB0270
- Jan 20House/ received bill from Legislative ResearchMinor
- Jan 18LFA/ fiscal note sent to sponsor for HB0270
- Jan 15LFA/ bill sent to agencies for fiscal input for HB0270
- Jan 15LFA/ bill assigned to staff for fiscal analysis for HB0270
- Jan 15Numbered Bill Publicly Distributed
- Jan 15Bill Numbered but not DistributedIntroduced
HealthcareEconomy & Jobs