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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.
A traditional non-compete stops an employee from working for a competitor in a certain geographical area for a certain amount of time after leaving the company. A non-solicitation agreement prevents an employee from poaching customers, contracts or other employees from the company that first hired them.
Important Terms to Include in Non-Compete AgreementsTime and Geographic Scope.Tolling of Non-Compete Period.Protectable Interests, Injunctive Relief, Attorneys' Fees, and Costs.Choice of Law and Forum Selection.Assignment.Material Job Changes.Right to Inform New Employer.
The Employee specifically agrees that for a period of months/years after the Employee is no longer employed by the Company, the Employee will not engage, directly or indirectly, either as proprietor, stockholder, partner, officer, employee or otherwise, in the same or similar activities as were performed for
Stuck in A Non-Compete Agreement and Looking for a Way Out? Top 5 Ways to Get Out of your Agreement for GoodProve Breach of Contract by Your Employer.Prove Lack of Interest to Enforce.Contract is Unreasonably Long.What the Company Claims is Proprietary or Confidential is Widely Available.More items...?
Non-Competition Clause Examples Example 1: Preventing former employees from using trade secrets. Example 2: Stopping contractors from competing with you. Example 3: Former partners limiting the geographical reach. Example 4: Extra protection in business contracts.
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.
Generally, the greater the geographic scope, the smaller the duration and vice versa. In Arizona, a duration longer than 6 months may not be enforceable absent proof that a longer period is necessary to hire and train a replacement.
Many Arizona employees are often subject to non-compete agreements, or covenants, in which the employee agrees in advance to not compete with his or her employer for some time after leaving or being terminated by the employer.