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Competition Clause or generally called NonCompete Clause is a clause as per which the employee agrees not to work with a rival company or start a similar trade or profession for a specified period of time after leaving his/her current employer.
In Arizona, non-compete agreements may be enforceable if reasonable. In determining whether a non-compete is reasonable, courts evaluate several factors, none of which are controlling.
What should be included in a standard non-compete agreement?Name of employer.Name of the employee.Type of work that is restricted.Terms of restriction.Jurisdiction.Duration of the agreement.
Even if you remain classified as a contractor, a non-compete clause may not be enforceable. Independent contractors are expected to be experts in their chosen field and are likely working for multiple companies at once. If one company attempts to enforce a non-compete clause, your ability to find work may be affected.
Noncompete agreements in Arizona are perfectly legal and will be enforced when they meet certain conditions. Arizona courts will uphold reasonable noncompete agreements that don't restrict employees for too long or from too far away.