Arizona Employment Non-competition Package
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FAQ
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.
Nonetheless, employers should remember that Arizona follows the ?blue pencil rule? and ?will blue pencil restrictive covenants, eliminating grammatically severable, unreasonable provisions[.]? Fearnow, 213 Ariz.
What States Are Blue Pencil States? StatePosition on Blue PencilingCaliforniaCourts cannot apply the blue pencil ruleColoradoCourts will only revoke the equitable parts of the covenantConnecticutCourts will only revoke the equitable parts of the covenantDelawareCourts will only revoke the equitable parts of the covenant47 more rows
Does that make it illegal? No. Texas is a "blue pencil" state. That means that an overbroad non-compete (for example: one that lasts for 10 years, or that has no geographic restrictions) is still enforced.
In California, Montana, and North Dakota, the blue pencil rule is not applicable. In District of Columbia, Louisiana, Maryland, Hawaii, New Mexico, Rhode Island, South Dakota, and Utah, the approach to the blue pencil covenant is unclear.
California Business and Professions Code section 16600 provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is void, subject to limited exceptions. So ?non-compete? agreements are not enforceable in California.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
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.
