Utah has enacted Senate Bill 111, introducing changes to employment restrictions involving veterinarians. The legislation updates terminology throughout existing law, replacing references to “post‑employment restrictive covenants” with the more familiar “non‑compete agreements.” It also adds several new definitions, including “veterinarian,” “veterinarian non-compete agreement,” “nondisclosure clause,” and “nonsolicitation agreement,” to clarify the scope of the new statutory framework. To support these changes, the bill creates two new statutory sections, 34‑51‑205 and 34‑51‑206, which specifically regulate post-employment restrictions for veterinarians.
The bill’s most significant change is the broad prohibition on restrictive covenants for veterinarians beginning May 6, 2026. Under the new rules, any veterinarian non‑compete agreement entered into on or after that date is automatically void unless the veterinarian holds at least a 5% ownership interest in the business. SB 111 goes further by prohibiting nondisclosure clauses and nonsolicitation agreements involving veterinarians for agreements executed on or after the same date. The law also declares any requirement that disputes be resolved outside Utah to be void and contrary to public policy, reinforcing the state’s effort to protect veterinarians from out‑of‑state forum or arbitration mandates.
The legislation affects both veterinarians and any entities employing or contracting with them, while leaving intact existing provisions for broadcasting companies and employees. Employers attempting to enforce any void non‑compete, nondisclosure, or nonsolicitation agreement face significant risk: they may be required to pay the veterinarian’s arbitration fees, attorney fees, court costs, and actual damages.