What are the laws concerning non-compete agreements?

In Arizona, non-compete agreements must be “reasonable” both in terms of their restrictions and their duration. Generally, the restriction must be limited geographically, to types of work, or to a specific market. In Arizona, non-compete agreements are only enforced if they are “necessary to protect the employer’s legitimate business interests.” In terms of duration, non-competes are enforceable when they are reasonably limited in time. If the agreement states a length of time that is deemed unreasonable, Arizona courts may choose to modify the clause so that it is enforceable. Arizona law also requires that employers provide employees with some form of consideration when entering into a non-compete agreement. This includes some type of compensation or benefit in exchange for the non-compete agreement. In addition, employers in Arizona cannot require non-compete agreements from employees that would interfere in their ability to find work or earn a livelihood. This is why Arizona’s laws are considered to be more employee friendly than those in other states. Employers should also take note of the fact that non-competes can only be enforced against former employees. Non-compete agreements must be created so that they can be enforced after the employee has left the company. This means that employers have to ensure that their agreement meets Arizona’s requirements which are in place to protect employees.

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What are the laws concerning non-compete agreements?

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