HB 270 — Healthcare Worker Post-Employment Amendments

-(xxi) 3 - HB0270 compared with HB0270S02 (q){(v)} a nursenaturopathic midwifephysician as that term is defined in Section 58-44a-102;58-71-102;

(r){(w)}(xxii) ana optometristnurse midwife as that term is defined in Section 58-16a-102;58-44a-102;

(s){(x)}(xxiii) aan physicaloptometrist therapistas underthat term is defined in Section 58-24b-302;58-16a-102;

(t){(y)}(xxiv) a physicianphysical astherapist thatunder term is defined in Section 58-68-102;58-24b-302;

(u){(z)}(xxv) a physician assistant as that term is defined in Section 58-70a-102;58-68-102;

(v){(aa)}(xxvi) a psychologistphysician underassistant as that term is defined in Section 58-61-301;58-70a-102;

(w){(bb)}(xxvii) a podiatricpsychologist physician under Section 58-5a-301;58-61-301;

(x){(cc)}(xxviii) a {radiologistpodiatric }physician radiologyunder practitioner as that term is defined in Section 58-54-102;58-5a-301;

(y){(dd)}(xxix) a registeredradiology nursepractitioner underas Titlethat 58,term Chapteris 31b,defined Nursein PracticeSection Act;58-54-102;

(z){(ee)}- a3 respiratory- careH.B. practitioner as that term is defined in Section 58-57-2;

{or}270 (aa){(ff)}Enrolled aCopy social(xxx) servicea workerregistered nurse under Title 58, Chapter 60,31b, PartNurse 2,Practice SocialAct; Worker Licensing Act{.} ;

or(xxxi) (gg) a substancerespiratory usecare disorderpractitioner counseloras underthat Titleterm 58,is Chapterdefined 60,in PartSection 5,58-57-2; Substance Use Disorder Counselor Act.

(5){(6)}(xxxii) "Nonsolicitation agreement" means an agreement, between a personsocial andservice anworker individualunder whoTitle works58, forChapter or60, withPart the2, person,Social inWorker whichLicensing theAct; individual agrees that on or after the day on which the individual no longer works for or with the person, the individual will not solicit the person's clients, customers, or employees.

[(4)]or (6){(7)}(xxxiii) (a) ["Post-employment restrictive covenant," also known as a "covenantsubstance notuse todisorder compete"counselor or "noncompete agreement," ] "Non-compete agreement" means an agreement, written or oral, between an employer and employee under whichTitle the58, employeeChapter agrees60, thatPart on5, orSubstance afterUse theDisorder dayCounselor onAct. 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.

(b) "Healthcare worker" does not include an individual:

(i) who holds a license described in Subsection (5)(a)(i) through (xxxiii);

and (ii) whose employment or contractual agreement does not require or involve practicing under the scope of the individual's license.

(6) "Nonsolicitation agreement" means an agreement, between a person and an individual who works for or with the person, in which the individual agrees that on or after the day on which the individual no longer works for or with the person, the individual will not solicit the person's clients, customers, or employees.

[(4)] (7)(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.

- 4 - HB0270 compared with HB0270S02 [(5)] (7){(8)}(8) "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 .

(1)(1)(a) (a) Except as provided in Subsection (2) and in addition to any requirements imposed under common law, for a [post-employment restrictive covenant] non-compete agreement- entered4 into- onEnrolled orCopy afterH.B. May 10, 2016, an employer and an employee may not enter into a [post-employment restrictive covenant] non-compete agreement for a period of more than one year from the day on which the employee is no longer employed by the employer.

(b)270 {Anagreement employerentered }into Onon or after May 6,10, 2026,2016, aan personemployer and aan healthcareemployee worker may not enter into a healthcare[post-employment restrictive covenant] non-compete agreement {withfor a healthcareperiod workerof more than one year from the day on orwhich afterthe Mayemployee 6,is 2026}no .longer employed by the employer.

(c)(b) [On ]Aor [post-employmentafter restrictiveMay covenant]6, non-compete2026, agreementa thatperson violatesand thisa [subsection]healthcare Subsectionworker (1)may isnot void.enter into a healthcare non-compete agreement.

(2)(c) (a)[ Subject]A to Subsection (2)(b), a [post-employment restrictive covenant] non-compete agreement betweenthat aviolates broadcastingthis company[ andsubsection] aSubsection broadcasting(1) employee is validvoid. only if:

(2)(a) Subject to Subsection (2)(b), a [post-employment restrictive covenant] non-compete agreement between a broadcasting company and a broadcasting employee is valid only if:

and (iii)(iii)(A) (A) the broadcasting company terminates the broadcasting employee for cause;

or - 5 - HB0270 compared with HB0270S02 (ii) the day on which the original term of the employment contract containing the [post-employment[ post-employment restrictive covenant] non-compete agreement ends.

(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] Subsection (2) is void.

34-51-202.- 5 - H.B.

270 Enrolled Copy 34-51-202 .

(1) This chapter does not prohibit{:}[prohibit[ ] {(a)} :

A severance agreement remains subject to any requirements imposed under common law.] non-compete agreementoragreement or a healthcare non-compete agreement;

or [(2)] (b) [This chapter does not prohibit a post-employment restrictive covenant] a non-compete agreementoragreement or a healthcare non-compete agreement related to or arising out of the sale of a business, if the individual subject to the [restrictive covenant] non-compete agreementoragreement or healthcare non-non-compete compete agreement receives value related to the sale of the business.

Section 434-51-203 is enacted to read:

34-51-203.34-51-203 .

(1) On or after May 6, 2026, a person and a healthcare worker may not enter into nonsolicitation agreement that prevents a healthcare worker from informing a {former } patient of any of the following:

34-51-301.34-51-301 .

- 6 - HB0270 compared with HB0270S02 If an employer seeks to enforce a [post-employment restrictive covenant]non-competecovenant] agreement{non-compete agreement or healthcare non-compete agreement}agreement through arbitration or by filing a civil action and it is determined that the [[post-employment post-employment restrictive covenant] non-compete agreement{agreement or } healthcare non-compete agreement is unenforceable, the employer is liable for the employee's:

34A-5-114.34A-5-114 .

(1)- As6 used- inEnrolled thisCopy section:H.B.

270 (1) As used in this section:

[(e) "Post-employment restrictive covenant" means the same as that term is defined in Section 34-51-102.] - 7 - HB0270 compared with HB0270S02 (f) "Proprietary information" means an employer's business plan or customer information.

(h)(h)(i) (i) "Sexual assault" means:

(A)- Section7 76-5-417,- enticingH.B. a minor;

270 Enrolled Copy (A) Section 76-5-417, enticing a minor;

(2)(2)(a) (a) A confidentiality clause regarding sexual misconduct, as a condition of employment, is against public policy and is void and unenforceable.

or - 8 - HB0270 compared with HB0270S02 (ii) may not retaliate based on an employee's refusal to enter into a confidentiality clause or an employment contract that, as a condition of employment, contains a confidentiality clause.

or (ii)- at8 the- requestEnrolled ofCopy theH.B. employee, facts that could reasonably lead to the identification of the employee;

270 (ii) at the request of the employee, facts that could reasonably lead to the identification of the employee;

This Bill Repeals:

- 9 - HB0270 compared with HB0270S02 Section 34-51-101, Title.

Effective date.

2-4-26 4:01 PM - 109 -