Here are eight tips that Arizona employers should follow when developing non-compete rules. Restrictive agreements should be limited to a geographic area in which the employer has a legitimate commercial interest. For example, an employer that only provides goods and services in the state of New Mexico has no legitimate business interests in Arizona. Therefore, a non-compete agreement that attempts to prevent a New Mexico employee from working for a competing company in Arizona would probably not apply. 5) Does your inaction set a precedent for other employees? Non-competition prohibitions are either effective or unnecessary, depending on whether they are enforced by the employer. If workers learn that an employer does not impose non-competition agreements, it is as if the non-competition agreement does not exist. Sometimes it is important to impose a non-compete agreement to set a precedent for other workers, so that the employer takes the non-compete agreement seriously. Non-competition agreements must be tightly adapted so as not to exceed the measures necessary to protect the legitimate interest of the employer. The courts analyze the applicability of competition by focusing primarily on the adequacy of three main features of the provision: its duration; Its geographical scope and the activity that limits them. A non-compete clause could, for example, say that a worker cannot compete with her former employer for six months, which is more enforced by a court than with a five-year statute of limitations. Second, a non-compete clause could say that a worker cannot compete with the former employer within five miles of the former employer`s office, which is more likely to be imposed by a court than if the non-compete says that the worker cannot work anywhere in the United States (and therefore the worker must travel to another country to find a job!).
Finally, a non-competition clause that states, for example, that a pulmonologist cannot practice pulmonology for a certain time and in a given field, is more likely than a non-competition that states that the person will not be able to practice medicine in Arizona next year (and therefore that doctor must enter a whole new field if he wants to stay in Arizona). Block information at an early stage if you intend to include it in non-competition agreements. In this context, you can see where the specific facts of your situation play an important role, whether your non-competition clause is applicable or not. Even if you put everything you put into your non-compete agreement, the courts want to make sure that everything you list is true.