One of the most common questions I get from business owners is whether or not NonCompete Agreements are legal. Yes, in Arizona they are!Essentially, noncompete clauses limit an employee's opportunity to excel in whatever skill or trade they're familiar with. In summary, non-compete agreements are legal in Arizona, but do have limitations. Non-compete agreements are often unenforceable against independent contractors because this would cause the business to forfeit its own profit and prosperity. The department must submit the completed ICON form as an attachment to the appropriate document in UAccess Financials. A noncompete agreement is a legally binding contract that prohibits an independent contractor from competing with the company who engaged it. Even if an employer has a signed noncompete agreement, it is important to analyze whether the noncompete is too broad. Federal employees cannot be engaged as independent contractors on federally sponsored contracts or grants. Understanding Arizona's Legal Landscape: Gain a thorough understanding of Arizona's laws governing non-compete agreements.