Non-Competition Agreements in Arizona

Non-competition agreements, also known as covenants not to compete or restrictive covenants, are employment contracts used by employers to limit the ability of an employee to compete with the employer by stealing customers or trade secrets. Enforceable agreements must strike a balance between protecting the employer's legitimate business interests from an unfair competitive advantage with the employee's right to work in a field for which he or she is trained.  In general, courts decide what is considered reasonable or not reasonable by examining the type and size of the business, how long and over what geographic area the restrictions apply and whether adequate consideration, or benefit, was given the employee at the time the agreement was signed.

The Law In Arizona

Arizona courts have determined that restrictive covenants are enforceable if the terms are no broader than necessary to protect certain business interests of the employer. Employers have legitimate interests in protecting their customer relationships, confidential information and trade secrets.  Factors considered when determining reasonableness include the former employee's ability to earn a living and reasonableness in terms of duration and geographic scope.