Quick FAQ: HB270 and Healthcare Employment Contracts
When does the law take effect?
May 6, 2026.
Who does this law apply to?
Most licensed healthcare professionals working in Utah, including physicians, nurses, physician assistants, therapists, and other licensed clinicians.
If I sign a contract after May 6, can my employer restrict where I practice after I leave?
Generally, no. The law eliminates most non-compete clauses in healthcare employment contracts.
Can my employer stop me from telling patients where I will practice next?
No. Contracts cannot prohibit you from informing former patients about your new employment or practice location.
Can employers still include repayment provisions in contracts?
Yes. Employers may still require repayment of reasonable costs such as sign-on bonuses, relocation assistance, or certain training expenses.
Does this law cancel non-compete clauses in contracts I already signed?
No. Contracts entered into before May 6, 2026 are not affected. However, healthcare professionals who are currently under contract may still wish to review their agreements and discuss their options.
If you have questions about how the new law may affect your employment situation, you may consider:
- Reviewing your current contract carefully
- Speaking with your employer about the upcoming policy change
- Consulting with a qualified attorney who has experience reviewing healthcare employment contracts
In some cases, employers and employees may choose to renegotiate contract terms or remove non-compete provisions in light of the new law.
Having a clear understanding of your contract and the changing legal landscape can help ensure that you make informed decisions about your career and practice.
If you have additional questions, or encounter any issues in the coming months, please reach out to us. We want to hear if there are any concerns as implementation of the law takes place.