Utah has enacted House Bill 270, which introduces restrictions on post‑employment covenants for healthcare professionals. Effective May 6, 2026, non‑compete agreements between employers and covered healthcare workers will be void. The legislation reflects a growing policy trend aimed at supporting patient choice and reducing barriers that limit healthcare workers’ ability to change employers, particularly in high‑demand clinical roles.
In addition to prohibiting non‑competes, HB 270 also restricts certain nonsolicitation agreements. Specifically, employers may no longer prevent healthcare workers from informing patients about their current or future place of employment. While more traditional confidentiality and patient‑list protections remain permissible, the law ensures that workers can communicate employment transitions without fear of violating restrictive covenants. The bill also includes terminology revisions throughout, standardizing references to “non‑compete agreements” for clarity and consistency.
The legislation carries meaningful enforcement consequences. Employers who attempt to enforce an agreement rendered void by HB 270 may be required to pay the healthcare worker’s arbitration fees, attorney fees, court costs, and actual damages. With the new rules applying broadly across a wide range of licensed healthcare professions, from physicians and nurses to therapists and other practitioners, healthcare organizations should review their employment agreements and compliance practices well ahead of the May 2026 effective date.