Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
Arizona Employee Restrictive Covenants
Category:
State:
Multi-State
Control #:
US-TC0916
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Word;
PDF;
Rich Text
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How to fill out Employee Restrictive Covenants?
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FAQ
Answer: While the Courts do not favor non-compete agreements, they are enforceable so long as they are 1) reasonable as to geographic scope, 2) reasonable as to duration of time, and 3) narrowly defined to limit activities that you performed for the employer.
In summary, non-compete agreements are legal in Arizona, but do have limitations.
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.
Arizona has some laws that provide greater protections to employees than federal law, including a higher minimum wage and paid sick leave, but generally follows federal law with respect to topics such as overtime pay, jury duty leave and occupational safety and health.
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.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice. The New York Legislature recently passed a bill that would ban noncompete agreements, but Gov.
Non-compete agreements are generally legal under Arizona law when they protect the employer from unfair business competition by a former employee. However, these agreements do have some limitations. Non-compete agreements must meet specific criteria to be legally valid.
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
