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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.
In order to be enforceable, a non-compete agreement must include an offer, acceptance, intent, and a benefit or consideration to the employee in exchange for his or her promise. The benefit could be as simple as getting the job or, for an existing employee, getting a promotion or raise.
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.
A standard non-compete agreement is a formal agreement between an employer and employee that states that the employee will not engage in any employment activities that are in competition or conflict with their primary job.
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
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
After expiration or termination of this agreement, employee name agrees not to compete with company name for a period of number years within a number mile radius of company name and location.
Some states have enacted even broader restrictions on non-competition agreements. Later this year, the District of Columbia will join California, North Dakota, and Oklahoma as the only states that ban the use of employer/employee non-competition agreements in most circumstances. See D.C. Act 23-563.