Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 81 First Substitute (2017GS)

Sponsor

Rep. Greene, B.

Final action

House/ filed 3/9/2017

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• outlines the scope of the chapter;
• addresses consideration and termination of employment as they relate to post-employment restrictive covenants;
• modifies remedy provisions;
• restricts the time for bringing an action to enforce post-employment restrictive covenants; and
• makes technical changes.

Every vote on this bill

Bill text

POST-EMPLOYMENT RESTRICTIVE COVENANT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brian M. Greene
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill amends provisions related to post-employment restrictive covenants.
Highlighted Provisions:
This bill:
▸ outlines the scope of the chapter;
▸ addresses consideration and termination of employment as they relate to
post-employment restrictive covenants;
▸ modifies remedy provisions;
▸ restricts the time for bringing an action to enforce post-employment restrictive
covenants; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34-51-201
, as enacted by Laws of Utah 2016, Chapter 153
34-51-301
, as enacted by Laws of Utah 2016, Chapter 153
ENACTS:
34-51-103
, Utah Code Annotated 1953
34-51-302
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
34-51-103
 is enacted to read:
 34-51-103.
Scope of chapter.
Consistent with this chapter, a court of competent jurisdiction determines whether a
post-employment restrictive covenant is enforceable.
Section 2. Section 
34-51-201
 is amended to read:
34-51-201.
Post-employment restrictive covenants.
(1)
 In addition to any requirements imposed under common law, for a
post-employment restrictive covenant entered into on or after May 10, 2016, an employer and
an employee may not enter into a post-employment restrictive covenant for a period of more
than one year from the day on which the employee is no longer employed by the employer.
(2) (a) An employer may not enforce a post-employment restrictive covenant against an
employee if:
(i) at the time the post-employment restrictive covenant is executed, the employee:
(A) is employed by the employer; and
(B) does not receive new consideration such as an increase in wages or a promotion; or
(ii) without cause, the employer terminates the employment of the employee within one
year of the date on which the employee executes the post-employment restrictive covenant.
(b) For purposes of Subsection (2)(a)(i), continuation of employment of an existing
employee is not consideration for a post-employment restrictive covenant.
(3)
 A post-employment restrictive covenant that violates this section is void.
Section 3. Section 
34-51-301
 is amended to read:
34-51-301.
Award of arbitration costs, attorney fees and court costs, and
damages.
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
]:
(1) 
the employee's
 costs associated with arbitration;
(2) 
the employee's
 attorney fees and court costs; and
(3) 
three times the amount of
 actual damages. 
Section 4. Section 
34-51-302
 is enacted to read:
 34-51-302.
Timing of action.
An employer may not bring an action to enforce a post-employment restrictive covenant
after the day on which the time period stated in the post-employment restrictive covenant
expires.
Legislative Review Note
Office of Legislative Research and General Counsel