Non-Compete Agreements in Arizona: What You Need to Know Before You Sign [Infographic]
Signing a non-compete agreement prohibits an employee from directly competing with the former employer in any way should the employee sign a new contract with a prospective employer.
Typically, these agreements are legally enforceable in Arizona if:
The non-compete agreement is limited to protecting the employer's legitimate business interests.
The agreement is reasonable in both duration and scope.
The agreement doesn't violate Arizona public policy.
Overly broad or unreasonable agreements, by contrast, may be unenforceable.
Here are some key terms of non-competes that are worth paying attention to before signing:
Where does the non-compete apply? Is it national, regional, or local?
Is the non-compete industry-wide or does it only exclude certain competitors?
What is the non-compete's duration? Lengthy non-compete agreements can unnecessarily restrict an employee's future career mobility.
Could the agreement impact your ability to find future employment in your preferred industry?
Are there damage provisions if you violate the agreement? If so, it is often wise to request the elimination of those terms.
To discuss a specific provision of the agreement that you find undesirable or other concerns regarding Arizona non-competes, contact an Arizona employment lawyer at Tyler Allen Law Firm.