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UT HB0203

Bill

Status

Failed

3/6/2026

Primary Sponsor

Tyler Clancy

Click for details

Origin

House of Representatives

2026 General Session

AI Summary

  • Prohibits enforcement of non-compete agreements against nonexempt employees, students in internships, employees 18 or younger, employees earning less than $155,000 annually, employees terminated in a reduction in force, and independent contractors

  • Requires employers to include any non-compete agreement with the initial job offer and provide at least 14 calendar days written notice before the agreement takes effect or employment begins

  • Maintains the existing one-year maximum duration for non-compete agreements entered into after May 10, 2016

  • Grants employees and independent contractors a private right of action against employers attempting to enforce unlawful non-compete agreements, with remedies including actual damages, injunctive relief, arbitration costs, and attorney fees

  • Takes effect May 6, 2026, and excludes nonsolicitation, nondisclosure, confidentiality, and training repayment agreements from the definition of non-compete agreements

Legislative Description

Non-Compete Amendments

Business

Last Action

House/ filed in House file for bills not passed

3/6/2026

Committee Referrals

Business, Labor, and Commerce1/22/2026
Rules1/20/2026

Full Bill Text

No bill text available