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Utah’s hemp industry is on the rise, which poses a question for many in the state: how can these professionals ensure that their career progress isn’t stalled by a burdensome contract? In a state where comprehensive non-compete agreements are extremely common, employees must stay aware of what they are getting into if they choose to sign one. These types of agreements are becoming more prevalent in the hemp industry, and you should therefore remain aware of the potential drawbacks they often bring.

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• The employee must receive valuable consideration for signing the agreement
• Time restrictions must be reasonable and must not exceed the amount of time the individual would likely stay with the company
• Scope restrictions must be reasonable, such as a certain geographic area in which the worker cannot compete with the company
• The restriction must be necessary in order to protect trade secrets.

And according to Hanes & rer, non-compete agreements simply can’t last longer than 12 months in the industrial hemp industry, even if they could in other industries. While these restrictions can be devastating to a growing business, it’s crucial that your business practices comply with any current regulations, lest you open yourself up to legal consequences. If you’re looking for a breakdown of non-competes in Utah and how they affect you and your business, check out the full legal overview proposed by Green & Nock.

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