Our firm wants to share a quick heads-up about new legislation that may affect some Utah employers, especially those in the healthcare industry. Utah has passed H.B. 270, a new law that significantly limits the use of noncompete agreements for licensed healthcare providers.
Starting May 6, 2026, employers generally may not enter into noncompete agreements with covered healthcare workers, including many licensed professionals such as physicians, nurses, dentists, therapists, psychologists, and other regulated providers.
The law also limits certain nonsolicitation provisions. In particular, employers may not use an agreement to prevent a healthcare worker from telling patients where the worker currently practices or will practice in the future. At the same time, the law does not eliminate every post-employment restriction. Certain severance-based restrictions and sale-of-business arrangements may still be enforceable, and confidentiality obligations remain permissible.
For healthcare employers, now is a good time to review employment agreements, restrictive covenant language, and related onboarding and separation documents before the new law takes effect. If you employ licensed healthcare providers, our team would be happy to help you review and update your employment documents to comply with this new law.
