Non-Competition After Hiring

Hello,

I have been working for a company for one year now and now I am asked to sign a non-compete. Does Arizona law find such contracts legitimate when I have been working for the company for some time?
Do non-competes only pertain to people who one day decide they will open their own business? Can non-competes really be enforced for 10 years?

Please let me know whatever advise you have.

Thank you.

1 answer  |  asked Apr 12, 2011 12:33 AM [EST] in Non-competition  |  applies to Arizona

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Answers (1)

Francis Fanning
Arizona enforces non-compete agreements, but only if they meet three conditions: First, they must be reasonably necessary to protect a legitimate interest of the employer (mere avoidance of competition is not a legitimate interest, but protection of customer relationships is); Second they must be reasonably restricted in geographic scope (if you never did any work for the employer outside the Phoenix metropolitan area, then a non-compete that covers the entire state of Arizona would probably be too broad); Third, the agreement must be reasonably limited in time ( a ten year agreement would undoubtedly be too long to be enforced).
I would recommend that you have an attorney review the agreement and the circumstances of your employment to determine whether it would be enforceable.

posted by Francis Fanning  |  Apr 12, 2011 4:08 PM [EST]