In Arizona’s competitive business environment, protecting your company’s intellectual property, client relationships, and market position is essential. One legal tool that often comes into play is the non-compete agreement. But how enforceable are these contracts in Arizona—and how can they be structured to truly safeguard your business?
In this post, the attorneys at Enara Law break down everything business owners need to know about non-compete agreements in Arizona, including legal requirements, best practices, and pitfalls to avoid.
What is a Non-Compete Agreement?
A non-compete agreement is a contract between an employer and an employee (or contractor) that restricts the employee’s ability to work for a competitor or start a competing business for a specified period and within a specific geographic area after leaving the company.
Are Non-Compete Agreements Enforceable in Arizona?
Arizona law allows non-compete agreements, but they must be reasonable in scope, duration, and geographic reach to be enforceable. Courts will not uphold overly broad or punitive restrictions.
Key considerations for enforceability:
- The agreement must protect a legitimate business interest (e.g., trade secrets, confidential information, client relationships).
- The time limit should be reasonable—typically no longer than 6-12 months.
- The geographic area must align with where the business actually operates.
- The agreement should not place an undue burden on the employee’s ability to earn a living.
How to Draft a Strong Non-Compete in Arizona
To improve enforceability and avoid costly legal battles:
✅ Clearly define the scope of restricted activities.
✅ Limit duration and geographic scope to what is necessary.
✅ Pair non-compete terms with non-solicitation and confidentiality clauses for comprehensive protection.
✅ Ensure the employee receives adequate consideration (such as employment, promotion, or bonus).
At Enara Law, our team customizes agreements that align with Arizona law while prioritizing your business’s protection.
Common Mistakes to Avoid
❌ Using a one-size-fits-all agreement template without tailoring to your industry.
❌ Imposing restrictions broader than necessary.
❌ Failing to review agreements periodically as business operations change.
Why Work with Enara Law?
Our business attorneys at Enara Law have extensive experience drafting, reviewing, and enforcing employment agreements for Arizona businesses. We provide cost-effective, strategic guidance to help you safeguard your company without unnecessary legal exposure.
Contact us today at (602) 687-2010 to schedule a consultation and protect what you’ve built.