What is the effect of a non-compete agreement under Arizona law?

A non-compete agreement in Arizona is enforceable if it is deemed reasonable and serves to protect legitimate business interests. The enforceability of these agreements hinges on a few key factors, such as the duration and geographic scope of the restriction, as well as its impact on the employee's ability to earn a living. Arizona courts have established that for a non-compete to be valid, it must be limited in scope such that it does not impose an undue hardship on the employee while still allowing the employer to protect proprietary interests, client relationships, or confidential information.

A non-compete that is excessively broad in time, geographic area, or the scope of activities it restricts may be found unenforceable, as it would not align with public policy promoting an individual's right to work. Furthermore, while employee consent is important in the formation of a contract, it is not a standalone requirement that must always be in writing for a non-compete to be enforceable in Arizona. The core consideration is that the agreement itself must be reasonable and not impede fair competition in the marketplace. This understanding shows how courts balance interests between protecting businesses and allowing for employee mobility and opportunity.