Senate passes tenth substitute of House Bill 251, limits post‑employment noncompete covenants

The Utah Senate voted to pass the tenth substitute of House Bill 2 51, a measure revising post‑employment restrictive covenant law, after hours of debate and adoption of an amendment clarifying the bill will not apply retroactively.

Sponsor Senator Adams moved final passage of the tenth substitute as amended, and Senator Weiler described Amendment 1 — adopted on the floor — as a clarification that the changes apply only to post‑employment restricted covenants “entered into or after 05/10/2016.” Weiler said the insertion was intended "to clarify that any non competes already in agreement in existence are not being, retroactively invalidated by this agreement." He characterized the bill as a negotiated compromise among stakeholders after extensive work during the session.

Opponents on the floor said the compromise still leaves some workers or specialized occupations vulnerable. Senator Scheazawa warned that "there are still groups out there that are going to be still not protected," and urged continued work in the interim to address narrow categories of workers. Senator Fillmore said the proposal ‘‘tries to put a one‑size‑fits‑all solution onto our business community’’ and stated she would vote no.

During final consideration, Senator Jenkins publicly declared a conflict of interest, saying he was "in court today. My company is on a on 1 of these very issues," and recorded a no vote. The presiding officer announced the tenth substitute passed with 22 ayes, 6 nays and 1 absent; the bill will be returned to the House for further consideration.

Supporters framed the legislation as a balance between business interests and worker mobility, and noted the Legislature can revisit the matter next session if additional changes are needed. Opponents urged more tailored protections for specialized employees and signaled intent to press the issue in the interim.