Utah 2026 General Session Status: To Executive 1 R cosponsors

HB 203 — Non-Compete Amendments

Last action — House/ filed

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been sent to the executive. Introduced January 08, 2026. It awaits signature.

Next likely step: the executive signs it into law or issues a veto.

Prognosis

Advancing 46% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • To Executive

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

178 added · 162 removed

Plain-language change summary

In the latest version of Bill HB 203, a new provision has been added that makes it illegal for employers to enforce non-compete agreements against independent contractors, alongside existing protections for employees. Additionally, employers must now provide employees with the non-compete agreement at the time of job offer, allowing them to understand the terms beforehand. These changes are significant because they enhance worker protections and ensure that individuals have a clearer understanding of their employment agreements, potentially leading to greater job mobility.

→
Previous
Latest
01-30 12:50 1st Sub.
HB0203S01 compared with HB0203 {Omitted text} shows text that was in HB0203 but was omitted in HB0203S01 inserted text shows text that was not in HB0203 but was inserted into HB0203S01 DISCLAIMER:
(Buff) H.B.
This document is provided to assist you in your comparison of the two bills.
203 Tyler Clancy proposes the following substitute bill:
Sometimes this automated comparison will NOT be completely accurate.
Therefore, you need to read the actual bills.
This automatically generated document could contain inaccuracies caused by:
limitations of the compare program;
bad input data;
or other causes.
Tyler Clancy Senate Sponsor:
Tyler Clancy Senate Sponsor:Heidi Balderree 3 LONG TITLE General Description:
Heidi Balderree 3 LONG TITLE General Description:
▸ requires that an employer presenting an employee with an offer of employment include with the offer of employment a non-compete agreement if the employer intends to enter into a non-compete agreement with the employee;
▸ {prohibits an employer from enforcing a non-compete agreement if the non-compete agreement restricts an employee's ability to work within 25 miles of a geographic location;} ▸ requires that an employer presenting an employee with an offer of employment include with the offer of employment a non-compete agreement if the employer intends to enter into a noH-compete agreement with the employee;
▸ imposes requirements on an employer presenting an employee with a non-compete agreement;
B ▸ imposes requirements on an employer presenting an employee with a non-compete agreem2nt;
s ▸ requires that an employer give an employee advance notice of a non-compete agreement;
▸ requires that an employer give an employee advance notice of a non-compete agreement;
▸ makes void a non-compete agreement under certain conditions;
HB0203 compared with HB0203S01 ▸ makes void a non-compete agreement under certain conditions;
S ▸ provides that a person that fails to comply with provisions that this bill enacts may not b enforce a non-compete agreement;
▸ provides that a person that fails to comply with provisions that this bill enacts may not enforce a non-compete agreement;
H ▸ grants a right of action to an individual against a person that attempts to enforce an B unlawful non-compete agreement;
▸ {authorizes the Labor Commission to investigate and issue a fee for violating provisions relating to non-compete agreements;} ▸ grants a right of action to an individual against a person that attempts to enforce an unlawful non- compete agreement;
and .
and ▸ makes technical changes.
▸ makes technical changes.
Money Appropriated in this Bill:
2 Money Appropriated in this Bill:
None 1st Sub.
None Utah Code Sections Affected:
(Buff) H.B.
203 01-30 12:50 Utah Code Sections Affected:
34-51-102, as last amended by Laws of Utah 2018, Chapter 465 34-51-201, as last amended by Laws of Utah 2019, Chapter 132 34-51-202, as enacted by Laws of Utah 2016, Chapter 153 34-51-301, as enacted by Laws of Utah 2016, Chapter 153 REPEALS:
34-51-102 , as last amended by Laws of Utah 2018, Chapter 465 34-51-201 , as last amended by Laws of Utah 2019, Chapter 132 34-51-202 , as enacted by Laws of Utah 2016, Chapter 153 34-51-301 , as enacted by Laws of Utah 2016, Chapter 153 REPEALS:
34-51-101, as enacted by Laws of Utah 2016, Chapter 153 Be it enacted by the Legislature of the state of Utah:
34-51-101 , as enacted by Laws of Utah 2016, Chapter 153 Be it enacted by the Legislature of the state of Utah:
34-51-102 .
34-51-102.
or (iii) radio;
or - 2 - HB0203 compared with HB0203S01 (iii) radio;
(3) "Exempt broadcasting employee" means a broadcasting employee who is compensated on a salary basis, as defined in 29 C.F.R.
{(3) "Commission" means the Labor Commission created in Section 34A-1-103.} {[(3){]} {(4)} } "Exempt broadcasting employee" means a broadcasting employee who is compensated on a salary basis, as defined in 29 C.F.R.
(4) "Nonexempt employee" means an employee who is nonexempt under the requirements of the Fair Labor Standards Act of 1938, 29 U.S.C.
{(5) {"Garden leave clause" means a provision in a non-compete agreement where, as a condition for the enforcement of the non-compete agreement, an employer agrees to continue to pay an employee 100% of the employee's annual compensation for the year in which the non-compete agreement is in effect.} } (6)(4) "Nonexempt employee" means an employee who is nonexempt under the requirements of the Fair Labor Standards Act of 1938, 29 U.S.C.
[(4)] (5)(a) ["Post-employment restrictive covenant," also known as a "covenant not to compete" or "noncompete agreement," ] "Non-compete agreement" means an agreement, written or oral, between an employer and employee under which the - 2 - 01-30 12:50 1st Sub.
[(4)] (7){(5)} (a) ["Post-employment restrictive covenant," also known as a "covenant not to compete" or "noncompete agreement," ] "Non-compete agreement" means an agreement, written or oral, between an employer and employee under which the employee agrees that on or after the day on which the employer no longer employs the employee, the employee, either alone or as an employee of another person, will not compete with the employer in providing [products, processes, or services] a product, process, or service that [are] is similar to the employer's [products, processes, or services] product, process, or service.
(Buff) H.B.
203 employee agrees that on or after the day on which the employer no longer employs the employee, the employee, either alone or as an employee of another person, will not compete with the employer in providing [products, processes, or services] a product, process, or service that [are] is similar to the employer's [products, processes, or services] product, process, or service.
[(5)] (6) "Sale of a business" means a transfer of the ownership by sale, acquisition, merger, or other method of the tangible or intangible assets of a business entity, or a division or segment of the business entity.
- 3 - HB0203 compared with HB0203S01 [(5)] (8){(6)} "Sale of a business" means a transfer of the ownership by sale, acquisition, merger, or other method of the tangible or intangible assets of a business entity, or a division or segment of the business entity.
34-51-201 .
34-51-201.
(b) the employee's total earnings from the employer in the most recent calendar year are less than $155,000;
(b) the employee's total earnings from the employer in the most recent calendar year are less than $155,000;or (c) the employer terminates the employee {without cause;
or (c) the employer terminates the employee as a result of a reduction in force.
or} as a result of a reduction in force.
(3) A person may not enforce a non-compete agreement entered into on or after May 6, - 3 - 1st Sub.
{(d) {the non-compete agreement restricts an employee's ability to work more than 25 miles from a specific geographic location.} } (3) A person may not enforce a non-compete agreement entered into on or after May 6, 2026, against an independent contractor.
(Buff) H.B.
(4) (a) Subject to Subsection (5), when making an offer of employment, an employer shall include with the offer of employment to the prospective employee any non-compete agreement the employer intends to enter into with the prospective employee.
203 01-30 12:50 2026, against an independent contractor.
(4)(a) Subject to Subsection (5), when making an offer of employment, an employer shall include with the offer of employment to the prospective employee any non-compete agreement the employer intends to enter into with the prospective employee.
(i) present the non-compete agreement in a way that a reasonable individual would understand the non-compete agreement;
- 4 - HB0203 compared with HB0203S01 (i) present the non-compete agreement in a way that a reasonable individual would understand the non- compete agreement;and (ii) provide, in the offer of employment or contract, a statutory reference to this section{;} .
Show all 61 changed rows (21 more)
Previous
Latest
and (ii) provide, in the offer of employment or contract, a statutory reference to this section.
{(iii) {include a garden leave clause in the non-compete agreement;
(5) Before entering into a non-compete agreement with an employee, an employer shall provide to the employee a written notice of the non-compete agreement at least 14 calendar days before the earlier of the day on which:
and} } {(iv) {present the garden leave clause in a way that a reasonable individual would understand the garden leave clause.} } (5) Before entering into a non-compete agreement with an employee, an employer shall provide to the employee a written notice of the non-compete agreement at least 14 calendar days before the earlier of the day on which:
(6)(a) A non-compete agreement that violates Subsections (1) through (3) is void.
(6) (a) A non-compete agreement that violates Subsections (1) through (3) is void.
[(2)] (7)(a) Subject to Subsection [(2)(b)] (7)(b), a [post-employment restrictive covenant] non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:
[(2)] (7) (a) Subject to Subsection [(2)(b)] (7)(b), a [post-employment restrictive covenant] non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:
and (iii)(A) the broadcasting company terminates the broadcasting employee for cause;
and (iii) (A) the broadcasting company terminates the broadcasting employee for cause;
(b) A [post-employment restrictive covenant] non-compete agreement described in Subsection [(2)(a)] (7)(a) is enforceable for no longer than the earlier of:
(b) A [post-employment restrictive covenant] non-compete agreement described in Subsection [(2) (a)] (7)(a) is enforceable for no longer than the earlier of:
- 4 - 01-30 12:50 1st Sub.
(i) one year after the day on which the broadcasting employee is no longer employed by the broadcasting company;
(Buff) H.B.
or - 5 - HB0203 compared with HB0203S01 (ii) the day on which the original term of the employment contract containing the [post-employment restrictive covenant] non-compete agreement ends.
203 (i) one year after the day on which the broadcasting employee is no longer employed by the broadcasting company;
(c) A [post-employment restrictive covenant] non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this [subsection] Subsection (7) is void.
or (ii) the day on which the original term of the employment contract containing the [ post-employment restrictive covenant] non-compete agreement ends.
{(8)} {(a) The commission may investigate a reported violation of this section.} {(b) If the commission investigates an alleged violation of this section and determines that a person has violated this section, the commission shall issue a fee to the person for up to $10,000 per violation.} Section 3.
(c) A [post-employment restrictive covenant] non-compete agreement between a broadcasting company and a broadcasting employee that does not comply with this [ subsection] Subsection (7) is void.
Section 3.
34-51-202 .
34-51-202.
34-51-301 .
34-51-301.
(2)(a) An employee or independent contractor has a right of action against a person that seeks to enforce a non-compete agreement that violates this chapter if the employee is a party to the non-compete agreement.
(2) - 6 - HB0203 compared with HB0203S01 (a) An employee or independent contractor has a right of action against a person that seeks to enforce a non-compete agreement that violates this chapter if the employee is a party to the non-compete agreement.
- 5 - 1st Sub.
(b) If an individual brings an action against a person in accordance with Subsection (2)(a), and a court finds that the non-compete agreement violates this chapter, the court shall award the individual:
(Buff) H.B.
203 01-30 12:50 (b) If an individual brings an action against a person in accordance with Subsection (2)(a), and a court finds that the non-compete agreement violates this chapter, the court shall award the individual:
This Bill Repeals:
Effective date.
- 6 -
1-30-26 12:50 PM - 7 -
⬇ Download PDF
View plain text versions (3)

How this bill changes current law

10 changes Share ↗

Compared against the Utah Code as published AI-generated reading aid — verify against the official bill.

The bill introduces new definitions and restrictions regarding non-compete agreements, specifically addressing healthcare workers and independent contractors while imposing additional requirements on employers.

  • 34-51-102

    Commission means the Labor Commission created in Section 34A-1-103.

    Removes the definition of 'Commission' from the definitions section.

  • 34-51-102

    Post-employment restrictive covenant, also known as a covenant not to compete or noncompete agreement, means an agreement, written or oral, between an employer and employee under which the employee agrees that on or after the day on which the employer no longer employs the employee, the employee, either alone or as an employee of another person, will not compete with the employer in providing products, processes, or services that are similar to the employer's products, processes, or services. → Non-compete agreement means an agreement, written or oral, between an employer and employee under which the employee agrees that on or after the day on which the employer no longer employs the employee, the employee, either alone or as an employee of another person, will not compete with the employer in providing a product, process, or service that is similar to the employer's product, process, or service.

    Clarifies and simplifies the definition of 'Non-compete agreement'.

  • 34-51-201

    the employer terminates the employee without cause;

    Eliminates the condition that allows enforcement of a non-compete agreement if termination was without cause.

  • 34-51-201

    the non-compete agreement restricts an employee's ability to work more than 25 miles from a specific geographic location.

    Removes a specific restriction related to geographic limitations on non-compete agreements.

  • 34-51-201

    A person may not enforce a non-compete agreement entered into on or after May 6, 2026, against an independent contractor.

    Establishes that non-compete agreements cannot be enforced against independent contractors.

  • 34-51-201

    Subject to Subsection (5), when making an offer of employment, an employer shall include with the offer of employment to the prospective employee any non-compete agreement the employer intends to enter into with the prospective employee.

    Requires employers to provide non-compete agreements with job offers.

  • 34-51-201

    Before entering into a non-compete agreement with an employee, an employer shall provide to the employee a written notice of the non-compete agreement at least 14 calendar days before the earlier of the day on which the employee begins working for the employer or the non-compete agreement becomes effective.

    Mandates advance written notice of non-compete agreements to employees.

  • 34-51-201

    An employer that does not comply with the requirements of Subsections (4) and (5) may not enforce the provisions of a non-compete agreement.

    Establishes penalties for employers who fail to comply with new non-compete requirements.

  • 34-51-202

    a reasonable severance agreement mutually and freely agreed upon in good faith at or after the time of termination that includes a post-employment restrictive covenant. A severance agreement remains subject to any requirements imposed under common law. → a reasonable severance agreement mutually and freely agreed upon in good faith at or after the time of termination that includes a non-compete agreement;

    Updates terms to reflect the revised definition of non-compete agreements.

  • 34-51-301

    If an employer seeks to enforce a post-employment restrictive covenant through arbitration or by filing a civil action and it is determined that the post-employment restrictive covenant is unenforceable, the employer is liable for the employee's costs associated with arbitration; attorney fees and court costs; and actual damages. → If an employer seeks to enforce a non-compete agreement through arbitration and the arbitrator determines that the non-compete agreement violates this chapter, the arbitrator shall award the employee: costs associated with arbitration; and actual damages.

    Changes the enforcement process and liability for non-compete agreements to include arbitration outcomes.

Action History

  1. House/ filed

  2. House/ strike enacting clause

  3. House/ 3rd Reading Calendar to Rules [House Rules Committee]

  4. House/ 3rd reading

  5. LFA/ fiscal note publicly available for HB0203S01

  6. LFA/ fiscal note sent to sponsor for HB0203S01

  7. House/ 2nd reading

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

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

  10. House Comm - Substitute Recommendation [House Business, Labor, and Commerce Committee]

  11. LFA/ bill sent to agencies for fiscal input for HB0203S01

  12. LFA/ bill assigned to staff for fiscal analysis for HB0203S01

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

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

  15. House/ 1st reading (Introduced)

  16. House/ received fiscal note from Fiscal Analyst

  17. LFA/ fiscal note publicly available for HB0203

  18. LFA/ fiscal note sent to sponsor for HB0203

  19. House/ received bill from Legislative Research

  20. LFA/ bill sent to agencies for fiscal input for HB0203

  21. LFA/ bill assigned to staff for fiscal analysis for HB0203

  22. Numbered Bill Publicly Distributed

  23. Bill Numbered but not Distributed

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 1 co-sponsors · 102 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (102)

102 members have not signed on to this bill.

Show all 102 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 203?
HB 203 is sponsored by Heidi Balderree (Republican) and Clancy, T..
What is the current status of HB 203?
This bill has been sent to the executive. Introduced January 08, 2026. It awaits signature.
Where can I track HB 203?
Track HB 203 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on HB 203

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of HB 203

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →