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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.
Therefore, non-compete agreements are often unenforceable against independent contractors because this would cause the business to forfeit its own profit and prosperity in simple exchange for a portion of its business.
Independent contractors and consultants may also be subject to a non-compete clause in their employment contract that seeks to avoid competition after they terminate a relationship and separate from the company.
By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.
Arizona courts have found restrictive covenants to be reasonable and enforceable when they protect some legitimate interest of the employer beyond simply protection from competition.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Even if you remain classified as a contractor, a non-compete clause may not be enforceable. Independent contractors are expected to be experts in their chosen field and are likely working for multiple companies at once. If one company attempts to enforce a non-compete clause, your ability to find work may be affected.
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...?
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.