Restrictive Covenants

Restrictive Covenants: What Employers Need to Know

Understanding restrictive covenants is critical for any business that wants to protect its relationships, confidential information, and long-term stability—without accidentally creating agreements that are unenforceable or legally risky. In this Fired Up Fridays webinar, employment attorney Spencer Phillips from Employer-Lawyer walks employers through the most common types of restrictive covenants and explains how recent Utah laws are changing what businesses can and cannot do.

By watching this webinar, you’ll gain a clear, practical overview of the different agreements companies use to protect themselves, including non-compete agreements, non-solicitation agreements, non-disclosure agreements (NDAs), invention assignment agreements, non-disparagement clauses, and provisions requiring the return or destruction of company property. Spencer explains how each type works, what it’s designed to protect, and where employers often go wrong.

A major focus of the session is how Utah’s Post-Employment Restrictions Act impacts non-compete agreements. You’ll learn why most non-competes in Utah are now limited to 12 months or less, what happens if an agreement exceeds that limit, and how trying to enforce an invalid non-compete can expose an employer to attorney’s fees and court costs. Spencer also highlights real-world examples of problematic contract language so you can better recognize red flags in your own agreements.

The webinar also clarifies the important legal differences between non-compete and non-solicitation agreements, helping you understand when each tool is appropriate and how long certain restrictions can realistically last. You’ll hear about key exceptions to the 12-month rule—such as severance agreements and the sale of a business—and why non-solicitation agreements are treated differently under Utah law.

Another valuable takeaway is how courts evaluate whether a restrictive covenant is “narrowly tailored.” Spencer explains what that standard really means, how geographic and role-based restrictions are analyzed, and why overly broad language is more likely to be struck down. These insights can help you draft or revise agreements that are more likely to hold up if challenged.

Finally, the webinar covers recent developments affecting healthcare providers in Utah, including a new statute that can automatically void non-competes for certain medical and mental health professionals. Spencer also shares perspective on where the law may be headed in the future, giving employers early insight into trends that could further limit or reshape non-compete enforcement.

Whether you’re a business owner, HR leader, or manager, this webinar offers valuable guidance on how to use restrictive covenants wisely, stay compliant with Utah law, and reduce the risk of costly disputes. Watching it can help you protect your business interests while avoiding agreements that do more harm than good.

For help reviewing or drafting restrictive covenants for your business, contact Employer-Lawyer at (801) 874-4964.