Non-Compete Agreement in Arizona
State-specific overview · Employment Law
Arizona enforces reasonable non-competes protecting legitimate business interests, with a presumption against enforceability for restrictions exceeding two years.
How Arizona treats Non-Compete Agreement
Arizona Revised Statutes § 34-220 establishes that non-compete agreements are enforceable if they protect legitimate business interests, including trade secrets, confidential business information, substantial relationships with prospective or existing customers, and goodwill associated with an ongoing business. Restrictions lasting two years or less are presumed reasonable, while those exceeding two years face a presumption of unreasonableness that the employer must rebut. The agreement must also be reasonable in geographic scope and line of business.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Arizona.