Utah Bans Post-Employment Noncompetes for Healthcare Workers Effective May 6, 2026

On March 24, 2026, Governor Spencer J. Cox signed the Healthcare Worker Post-Employment Amendments, House Bill 270 (the “Amendments”) into law.

Taking effect on May 6, 2026, the Amendments eliminate, with limited exceptions, post-employment noncompetes in the State of Utah for healthcare workers.

Overview of the Amendments

The Amendments build on Utah’s existing Post-Employment Restrictions Act (the “Act”), which generally permits post-employment noncompete agreements, provided that the restricted period under the noncompete does not exceed one year from the employee’s last day of employment. 

Effective May 6, 2026, the Amendments prohibit any “healthcare noncompete agreement,” which is defined as an: “agreement between a person and a healthcare worker within which the healthcare worker agrees that, after the day on which the healthcare worker no longer works for or with the person, the healthcare worker will not engage in a service that the healthcare worker may provide under the scope of the healthcare worker’s license: (a) for a restricted period of time; or (b) within a specific geographic area.”

The Amendments broadly define “healthcare worker” to include the following:

• Advanced Practice Registered Nurse;
• Advanced Practice Registered Nurse – CRNA without prescriptive practice;
• Advanced Practice Registered Nurse intern;
• Behavioral health coach;
• Behavioral health technician;
• Certified dietitian;
• Certified psychology resident;
• Certified social worker;
• Clinical mental health counselor;
• Clinical social worker;
• Dentist;
• Genetic Counselor;
• Licensed behavior analyst;
• Licensed assistant behavior analyst;
• Licensed massage therapist;
• Licensed Practical Nurse;
• Marriage and family therapist;
• Associate marriage and family therapist;
• Medication aide;
• Mental health therapist;
• Naturopathic physician;
• Nurse midwife;
• Optometrist;
• Physical therapist;
• Physician;
• Physician Assistant;
• Podiatric physician;
• Psychologist;
• Radiology practitioner;
• Registered Nurse;
• Respiratory care practitioner;
• Social service worker; and
• Substance use disorder counselor.

The Amendments do not apply to any individual identified above “whose employment or contractual agreement does not require or involve practicing under the scope of the individual’s license.”  Also, the Amendments do not prohibit a healthcare noncompete agreement that is: 1) included in a reasonable severance agreement; or 2) related to or arising out of the sale of a business, if the restricted individual receives value related to the sale of the business.

The Amendments also prohibit non-solicitation agreements that prevent a healthcare worker from informing a patient of the healthcare worker’s current or future place of employment.  Other non-solicitation provisions remain enforceable.

Under the Amendments, employers who seek to enforce noncompete agreements or healthcare noncompete agreements that are determined to be unenforceable will be liable for arbitration costs; attorney fees and court costs; and actual damages.

Employer Takeaways

These Amendments reflect a nationwide trend toward restricting the enforceability of post-employment noncompetes, including as applied to healthcare workers.

With the May 6, 2026 effective date quickly approaching, employers with employees in Utah should take proactive steps now to mitigate risk:

1. Revise Noncompete Agreements & Practices: Employers should not enter into a healthcare noncompete agreement with a healthcare worker located in Utah, outside of the context of a reasonable severance agreement or the sale of a business.
2. Revise Nonsolicitation Agreements: Employers should revise their non-solicitation agreements for healthcare workers located in Utah to ensure that they do not restrict the healthcare worker from informing a patient of their current or future place of employment.

Employers with employees located in multiple jurisdictions should review our 50-State Noncompete Survey, including its HealthCare-Specific Exclusions/Restrictions, and consider working with counsel to draft a restrictive covenant agreement that complies with the law(s) applicable to their workforce.