Will a non compete hold up In AZ?

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Will a non compete hold up In AZ?

I have been in woodworking and building for 20 years. I started at a company 2
years ago, 6 months ago they had me sign a non compete. I have been offered
another position at another similar company and not sure if it would hold up.
both companies have similar products and work AZ and California. I am just a
laborer in the warehouse and make no company decisions for anything.
The non compete is for 3 years and 200 miles. This line of work is all I know and
want to better support my family.

Asked on March 21, 2017 under Employment Labor Law, Arizona

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

AZ will enforce non-compete agreement but only under certain circumstances. First of all, they will not enforce a stand alone non-compete. Instead, they will only enforce such a restriction if it was a part of or "ancillary" to another agreement, such an employment contract, an independent contractor agreement, etc. Secondly, a business must have a legitimate interest if a non-compete is to be enforced, such as protecting its customers, trade secret/proprietary information and goodwill with customers and vendors. Finally, non-compete covenants must be reasonable if the restrictions are limited by geograhpic scope and duration. That having been said, with respect to this last restriction, a non-compete for 3 years or less and within 200 miles is deemed reasonable.


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