What conditions must non-compete agreements meet to be enforceable in Utah?

Non-compete agreements in Utah must be reasonable in geographic scope and duration and must serve a legitimate business interest to be enforceable. This standard supports the balance between protecting business interests and allowing individual workers the freedom to seek employment. The geographic scope refers to the area in which the former employee is restricted from competing, while the duration is the time period for which the restriction applies.

A covenant that is too broad in either of these aspects may be seen as overly restrictive or punitive rather than serving a valid business purpose. Additionally, the legitimacy of the business interest is crucial; for example, protecting trade secrets or customer relationships can justify the enforcement of such agreements. The courts will assess whether the non-compete serves a legitimate interest of the employer and does not impose undue hardship on the employee.

Other options suggest conditions that do not align with Utah's legal standards, such as verbal agreements or indefinite terms, which would not typically withstand legal scrutiny. Additionally, requirements for notarization are not a standard condition for enforceability in this context.