Add information about the parties involved. Describe the terms of the Non-Compete Agreement, such as the length and area of the restriction. If necessary, you can include a non-solicitation clause. Add a confidentiality clause.
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.
Present the employee with the severance agreement, worked on by your HR manager, and walk through each section. Leave time for the employee to ask questions and make clear the time frame during which the employee has time to meet with their lawyer, as well as their last day.
It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.
Your severance agreement should be offered to the employee during the notification meeting by your HR manager, who will review the details of the document with the employee. This can be a tricky conversation to have, which is why we suggest you have a layoff letter prepared.
Fraud, misrepresentation, duress, or unconscionability are common defenses you can use if you want to void a severance agreement that you already signed.
It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.
Non-competes are generally binding. So they are enforceable when an employee leaves the company. It doesn't matter if you're fired or resign. Valid agreements must be reasonable in scope.