Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 241 Second Substitute (2018GS)

Sponsor

Rep. Schultz, M.

Final action

Governor Signed 3/27/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• addresses the circumstances and conditions under which a post-employment restrictive covenant between a broadcasting company and a broadcasting employee is valid; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

POST-EMPLOYMENT RESTRICTIONS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Mike Schultz
Senate Sponsor: 
Daniel Hemmert
LONG TITLE
General Description:
This bill modifies provisions of the Post-employment Restrictions Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ addresses the circumstances and conditions under which a post-employment
restrictive covenant between a broadcasting company and a broadcasting employee
is valid; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34-51-102
, as enacted by Laws of Utah 2016, Chapter 153
34-51-201
, as enacted by Laws of Utah 2016, Chapter 153
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
34-51-102
 is amended to read:
34-51-102.
Definitions.
As used in this chapter:
(1) "Broadcasting employee" means an employee of a broadcasting company.
(2) "Broadcasting company" means a person engaged in the business of:
(a) distributing or transmitting electronic or electromagnetic signals to the general
public using one or more of the following:
(i) television;
(ii) cable; or
(iii) radio; or
(b) preparing, developing, or creating one or more programs or messages for
distribution or transmission by means described in Subsection (2)(a).
(3) "Exempt broadcasting employee" means a broadcasting employee who is
compensated on a salary basis, as defined in 29 C.F.R. Sec. 541.602, at a rate equal to or
greater than the greater of:
(a) $913 per week, or an equivalent amount if calculated for a period longer than one
week; or
(b) the rate at which an employee qualifies as exempt under the Fair Labor Standards
Act, 29 U.S.C. Sec. 213(a) on a salary basis as defined in 29 C.F.R. Part 541.
[
(1)
] 
(4)
 (a) "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 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.
(b) "Post-employment restrictive covenant" does not include nonsolicitation
agreements or nondisclosure or confidentiality agreements.
[
(2)
] 
(5)
 "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.
Section 2. Section 
34-51-201
 is amended to read:
34-51-201.
Post-employment restrictive covenants.
(1)
 [
In
] 
Except as provided in Subsection (2) and 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. A post-employment restrictive covenant that violates this
[
section
] 
subsection
 is void.
(2) (a) Subject to Subsection (2)(b), a post-employment restrictive covenant between a
broadcasting company and a broadcasting employee is valid only if:
(i) the broadcasting employee is an exempt broadcasting employee;
(ii) the post-employment restrictive covenant is part of a written employment contract
with a term of no more than four years; and
(iii) (A) the broadcasting company terminates the broadcasting employee for cause; or
(B) the broadcasting employee breaches the employment contract in a manner that
results in the broadcasting employee no longer being employed by the broadcasting company.
(b) A post-employment restrictive covenant described in Subsection (2)(a) is
enforceable for no longer than the earlier of:
(i) one year after the day on which the broadcasting employee is no longer employed by
the broadcasting company; or
(ii) the day on which the original term of the employment contract containing the
post-employment restrictive covenant ends .
(c) A post-employment restrictive covenant between a broadcasting company and a
broadcasting employee that does not comply with this subsection is void.