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Does a no-compete clause hold up in utah when other job opporunity within company are not available
Anonymous2 views2 answers
getting laid off from job due to contract being terminated with building. New management would like to keep me employeed but current company stating I can't due to contract. As of right now the company doesn't have other job placements for me
Although Utah courts (like all other courts) are skeptical of non-compete agreements, Utah courts will enforce a "restrictive covenant" such as a non-compete agreement so long as it is reasonable. Thus, the answer to your question depends on a number of factors that should be discussed with an employment attorney.
Generally speaking, courts will look at the length of the non-compete provision (the number of years it lasts), the geographic scope of the provision (what geographical areas does it prevent you from competing in), and the nature of the provision (what specific industries or jobs are excluded by the non-compete). Courts will also look to the "consideration" you gave up in exchange for the non-compete. In other words, what benefit did you receive as a result of agreeing not to compete (in Utah, courts generally find that continued employment after executing the non-compete is sufficient "consideration" for the non-compete).
In your case, I would look at the non-compete agreement to see if it is triggered by voluntary termination. In some circumstances, non-compete agreements will specifically state that they are only effective if you voluntarily quit (as opposed to being laid off).
Because of the numerous factors that must necessarily be evaluated in determining whether a non-compete is enforceable, I suggest contacting a local employment attorney to discuss the agreement and how you should handle your situation moving forward.
I hope that information is helpful.
-Tyson-
http://www.attorneyqna.com/attorneys/84101-ut-tyson-snow-1902079.html
http://www.linkedin.com/in/tysonsnow
Tyson provided an excellent answer. The application of Utah law will depend greatly upon the details of your contract and being laid off by your employer.
Based on your version of the facts it would seem hard for your employer to enforce the non-compete if it laid you off. Again, I agree with Tyson's answer. First, meet with the HR manager at your employer and ask for a written explanation of the employer's position after you provided a written statement that you have a job opportunity instead of being laid off.
If this does not resolve the issue then contact an employment attorney in your area.