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What Is an Arizona Non-Compete Agreement?
An Arizona non-compete agreement in Arizona is a document that uses restrictive covenants that employers often use with their employees and independent contractors to prohibit them from leaking their trade secrets, intellectual property, legitimate interests, and business practices once an employee leaves the company or is terminated from his or her position. The enforceability of this document in Arizona courts on a new employee or even a former employee often depends on many factors such as geographic scope (sometimes referred to as the geographic area), whether the employer's legitimate business interests are at stake, the period of time listed, public policy concerns, and whether there are any unreasonable provisions.
Before drafting a non-compete agreement or signing one offered at your new job, you should seek legal advice from an employment lawyer or law firm that practices employment law. A lawyer can explain the use of non-compete clauses in employment contracts and how they may affect you.
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The State of Arizona is a blue pencil state. This means that business activities that are protected by a non-compete agreement must include a reasonable time period. They may not be any broader than absolutely necessary to protect the employer's legitimate interests; otherwise, the enforceability of non-compete agreements may be endangered, leaving the employer's business at risk.
Additionally, Arizona law dictates that employers may not impose non-compete agreements on employees who work in broadcasting. According to § 23-494, employees who work for a television station, network, radio station, or radio network may not be forced to sign non-compete agreements that restrict the employee from seeking work within a geographical radius.
Protect your Arizona business by also using an Arizona non-disclosure agreement form. Download an Arizona non-disclosure agreement form now!
To write an Arizona non-compete agreement, first review the information above about Arizona law and how the state governs non-compete agreements. To ensure the enforceability of a non-compete agreement, you should seek legal advice from an attorney. The following clauses are generally included when you write an Arizona non-compete agreement.
Each party should receive a copy of the agreement for their records.
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