Non-Compete Agreements in Arizona: Enforcement Standards
Arizona generally enforces non-compete agreements that meet reasonableness standards, though recent legislative efforts have sought to add restrictions.
Current Law
Arizona follows traditional reasonableness analysis, looking at whether restrictions protect legitimate business interests and are reasonable in time, geography, and scope.
Key Points
- Protectable interests include trade secrets, customer relationships, and goodwill
- 2 years is typically considered a reasonable maximum duration
- Geographic restrictions must relate to where you actually worked
- Courts can modify unreasonable provisions
Consideration
Employment itself is typically sufficient consideration for new hires. For existing employees, additional consideration beyond continued employment is recommended.
Frequently Asked Questions
Does Arizona enforce non-compete agreements?
Yes, Arizona enforces reasonable non-competes that protect legitimate business interests. Courts apply traditional reasonableness analysis and may modify overbroad restrictions.
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