An NDA (non-disclosure agreement) keeps confidential company information private. An NCA (non-compete agreement) stops a former employee from working for or starting a competing business, and in Utah is limited to one year. An NSA (non-solicitation agreement) prevents a former employee from soliciting your customers, partners, or staff. Many businesses use all three together.
A non-disclosure agreement is a document that requires employees to not share company information. It can also be used between business partners who have special information about one another. Keeping specialized information private is often a critical baseline defense for any business doing any sort of confidential work.
Non-compete agreements differ in that they seek to prevent employees from starting or working for a company that could compete with their previous employer. Typically, an NCA will specify the types of businesses that are considered competition, geographic boundaries, and how long the NCA will last. In Utah, one year is the limit for how long an NCA can last.
A typical non-solicitation agreement again focuses on the employees of a company, but specifies their legal inability to solicit customers, business partners, or even other employees. This prevents previous employees from using their knowledge of your business relationships to benefit a competitor or even their own personal business interests.
Whether you need an NDA, NCA, NSA, or a mix of the three, Sumsion Business Law is here to help. We have 35 years of experience and use our expertise to benefit clients as they navigate legal challenges. Whether you are a business owner or an employee subject to one of the above agreements, we can help you determine what your next step should be. Contact us below to set up an initial consultation.
Q. What is the difference between an NDA and an NCA?
A. An NDA stops someone from sharing your confidential information, while an NCA stops a former employee from working for or starting a competing business. Many employers use both.
Q. How long can a non-compete last in Utah?
A. Utah limits post-employment non-compete agreements to one year from the date employment ends.
Q. What is a non-solicitation agreement?
A. A non-solicitation agreement prevents a former employee from soliciting your customers, business partners, or other employees after they leave.
Q. Do I need an NDA, NCA, or NSA?
A. It depends on what you are protecting. Confidential information calls for an NDA, competitive risk calls for an NCA, and protecting client and employee relationships calls for an NSA. Many businesses use a combination.
Q. Are non-compete agreements enforceable in Utah?
A. Yes, when they are reasonable in scope and duration. Utah law caps them at one year, and courts will not enforce terms that are overly broad.