Legal Question in Employment Law in Utah

non-compete

I am an executive recruiter with a search firm here in utah. I work in the IT industry, and focus on placing software professionals and am making a very good living. A few months ago, a group of us decided that we were interested in starting our own independant firm. When employed with this firm, I signed an agreement that states that I am not to practice within a 50mi radius, as well, I am not to contact any of my candidates or clients for one year (12 months). I know that Utah is a right to work state, and am curious as to how binding this non-compete is. Any information that you could provide me on the matter would be extremely valuable. Thanks.


Asked on 5/24/01, 5:52 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: non-compete

Non-compete agreements are required to be limited in scope and area - which you indicated was the case for your non-compete agreement. Most likely your agreement would be enforceable. You may want to open shop outside the 50 mile radius. You will also have to avoid use of any "proprietary" information which you may have obtained by virtue of your employment. Proprietary includes non-public information which is integral to the operation of a business.

Good luck.

PS. If you form an entity with others you absolutely should have a written agreement which governs the relationship in some detail - an Operating Agreement or By-Laws.

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Answered on 6/22/01, 1:46 pm


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