The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.
Competition Non Competition With Minimal Apparel In Maricopa
State:
Multi-State
County:
Maricopa
Control #:
US-00046
Format:
Word;
Rich Text
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FAQ
If the restriction on the employee is for an unusually long period of time, there's going to be a problem. One to two years is typically reasonable, while three to five years is unlikely to be upheld by a court.
Courts also tend to frown upon non-compete agreements that don't allow an employee to leave the region or state and continue to work, A non-compete agreement is unenforceable, if the geographic scope of the restriction is far too broad.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
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.
The very basic requirements are that the non-compete must (1) be in writing; (2) be part of an employment contract; (3) be based on valuable consideration; (4) be reasonable in scope of time and of territory; (5) not be against public policy.
Some states (California and a few others) have made non-competes void by statute, but even in states that have not passed anti-non-compete laws, courts have been trending toward avoiding enforcement of these provisions (in favor of the employee) for years.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
Non-compete agreements are unenforceable in California except under very narrow circumstances. Non-compete agreements signed in other states are unenforceable in California.
Non-compete agreements can be enforced in Arizona as long as they meet the proper requirements. For a non-compete agreement to be valid in Arizona, it must align with the following criteria: It must be reasonably limited in time. It must have a reasonable geographic scope.
Working for a competitor company or competing individual. Starting a company that offers the same products or services. Developing competing products or providing competing services.