Free Enterprise Utah applauds decision against running non-compete bill

As business leaders who care about our employees, the success of our businesses, and the strength of Utah’s economy and national reputation, we applaud the Legislature for its decision not to propose further legislation regarding non-compete agreements.

Free enterprise and the freedom of contract is a fundamental element of Utah’s economic success.The study released late last night provides additional data points to be considered carefully in context with many other elements. We look forward to reviewing it thoroughly and thoughtfully. As a coalition, we remain committed to engaging in productive dialogue on this issue to ensure Utah’s sustained economic strength. 

Good policy is driven by collaboration and adherence to sound principles. Our input going forward will continue to be based on these principles, which we presented earlier this month: 

  • Champion Free Enterprise – Utah’s free enterprise system is optimal for economic growth and job creation. Government intrusion disrupts and impairs this system. Employers and employees both benefit by freely engaging in contracts without excessive government intrusion.  
  • Sustain Utah’s National Reputation – Utah has earned a national reputation as the best state for business and careers. We support policies that protect this national brand, which attracts business, capital and talent to the Beehive State. 
  • Empower Entrepreneurs – Entrepreneurs are a critical source of economic growth, taking significant risk to build businesses and create jobs. We support policies to protect entrepreneurs from unfair practices and unnecessary interference in the free market
  • Support and Invest in People – People are the most important asset of any business. Policies encouraging employers to invest in talent through training and education are beneficial to both the employee and business. Employment contracts protect businesses and the people they employ. 
  • Embrace Transparency – Transparency in contractual arrangements is more effective than one-size-fits all legislation. We agree with more than half a century of Utah case law, which requires that employment contracts be negotiated in good faith, supported by consideration, tailored to protect legitimate interests of the employer, and include reasonable time and market limitations.