Utah Eliminates Most Healthcare Non-Compete Clauses: What HB270 Means for Healthcare Professionals

Utah has taken a major step toward strengthening its healthcare workforce and protecting patient access to care.

The Utah Legislature just passed HB270 – Healthcare Worker Post Employment Amendments, which eliminates most non-compete clauses in healthcare employment contracts beginning May 6, 2026. The new law represents a significant shift in how healthcare employment agreements are structured in the state and will provide healthcare professionals with greater flexibility throughout their careers.

UAFP CEO and lobbyist, Maryann Martindale, and HB270 sponsor, Representative Katy Hall.

Why Non-Compete Clauses Have Been a Concern in Healthcare

For years, non-compete clauses have been a common feature in healthcare employment contracts. These provisions typically restrict where a healthcare professional can work for a certain period of time after leaving an employer.

In practice, these agreements have often forced physicians and other healthcare providers to make difficult choices when changing jobs. Many providers have had to relocate to a different region, or even leave the state entirely, in order to continue practicing their profession.

These restrictions can have ripple effects beyond the healthcare workforce. Patients may lose access to trusted providers, continuity of care can be disrupted, and communities may struggle to retain healthcare professionals.

These concerns are particularly important in Utah, which currently ranks 49th in the nation for primary care physicians. Policies that help attract and retain healthcare professionals are critical to addressing workforce shortages and improving patient access to care.

What HB270 Does

HB270 significantly changes how employment contracts can be written for healthcare workers in Utah.

Beginning May 6, 2026, most healthcare employers will no longer be able to include non-compete clauses in employment contracts with healthcare professionals. This means that when a healthcare professional changes employers, they generally cannot be prevented from continuing to practice in the same geographic area.

The law also ensures that healthcare providers cannot be prohibited from informing former patients about their new practice location or future employment. This provision helps maintain continuity of care for patients who wish to continue seeing the same provider.

Together, these changes provide healthcare professionals with greater career mobility while helping patients maintain long-standing relationships with their providers.

What the Law Does Not Change

While HB270 eliminates most non-compete clauses, it does not eliminate all contractual protections for employers.

Employers may still require repayment of certain expenses associated with employment, including:

• Sign-on bonuses
• Relocation assistance
• Costs associated with required training or specialty programs

These provisions remain common in healthcare employment contracts and may still appear in agreements after the law takes effect.

In addition, the legislation does not apply to non-compete agreements that were entered into before May 6, 2026. Existing contracts signed prior to that date are not affected by the new law.

Why This Policy Matters for Healthcare Professionals

The impact of this legislation extends across the healthcare workforce, benefiting professionals at every stage of their careers.

For physicians, nurses, and other clinicians who are early in their careers, the change provides greater flexibility when evaluating job opportunities and negotiating employment contracts.

For experienced providers, the law helps ensure that career transitions do not require leaving a community where they have established patient relationships and professional networks.

And for healthcare professionals across the state, the legislation reinforces a healthcare system where patient care, not contractual restrictions, guides decisions about where providers practice.

By reducing barriers to mobility, HB270 also helps make Utah a more attractive place for physicians and other healthcare professionals to train, practice, and build long-term careers.

A Legislative Effort Years in the Making

UAFP worked closely with policymakers and partners throughout the legislative process to help advance this solution. Advocacy efforts like this are central to our mission of supporting healthcare professionals and improving the healthcare environment in Utah. HB270 was the result of extensive collaboration among healthcare stakeholders, legislators, and employers. Notably, the legislation moved forward with no industry opposition, reflecting a shared recognition of the importance of strengthening Utah’s healthcare workforce.

What If You Already Have a Contract With a Non-Compete?

HB270 applies to new employment contracts entered into after May 6, 2026, and it does not automatically invalidate non-compete provisions in contracts that were signed before that date.

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.

How Member Support Makes Advocacy Possible

Legislative victories like HB270 are possible because of the engagement and support of our members.

From workforce policies to scope-of-practice issues and patient access to care, our advocacy efforts aim to ensure that healthcare professionals have the tools, flexibility, and support they need to serve their communities.

HB270 represents one important example of how collective advocacy can lead to meaningful change for healthcare professionals across the state.

Looking Ahead

As the new law takes effect in May 2026, healthcare professionals negotiating new employment contracts should be aware of how the changes may affect their agreements.

Our organization will continue working with policymakers and healthcare partners to support policies that strengthen Utah’s healthcare workforce and improve access to care for patients across the state.

Support the Next Generation of Family Physicians

Advocacy successes like HB270 and SB319 demonstrate the impact of a strong professional community working together to improve the practice environment for family physicians and other healthcare professionals in Utah.

While our advocacy work is supported through membership, another important part of our mission is supporting the next generation of family physicians. Please take a moment to learn about the UAFP Foundation and how you can support our future healthcare workforce!