On April 23, 2024, the U.S. Federal Trade Commission voted 3-2 to finalize and promulgate a rule banning most non-compete clauses in employer-employee contracts.
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.
Raises the income threshold of noncompetes ban from $75,000 to $300,000, effective January 1, 2026.
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.
Under Arizona law, however, the blue pencil rule grants a trial court limited authority to eliminate “grammatically severable, unreasonable provisions” from a restrictive covenant but forbids the court to rewrite those provisions.
How To Legally Get Out of a Non-Compete Agreement Get a New Job That Doesn't Involve Competitive Activities. Prove That Your Former Employer Breached the Contract. Argue That the Non-Compete Provision Isn't Enforceable. Show That Your Previous Employer Has No Legitimate Business Interests.
On April 23, 2024, the FTC issued a ruling that bans non-compete provisions in the employment setting; it will take effect on September 4, 2024 provided no legal challenges to the ruling succeed.
To get out of a non-compete agreement in Texas, you may negotiate with your employer, prove that the terms are unreasonable or unenforceable, or show that it violates legal standards.
How To Legally Get Out of a Non-Compete Agreement Get a New Job That Doesn't Involve Competitive Activities. Prove That Your Former Employer Breached the Contract. Argue That the Non-Compete Provision Isn't Enforceable. Show That Your Previous Employer Has No Legitimate Business Interests.