Non-compete agreements are a hotly debated issue in employment law. Employers and employees always want to know how to get out of a non-compete in Arizona. As an employee, you may feel trapped by restrictions that limit your ability to earn a living. However, if you run a business, these agreements help protect it.
While getting out of these agreements is possible, understanding how to navigate the process can be complicated. At Shields Petitti & Zoldan, PLC, we have been litigating employment law disputes in Phoenix for decades. We have seen these cases from both sides and know what courts in Arizona consider when deciding whether to enforce or invalidate a non-compete in Arizona.
Arizona and Non-Competes
In Arizona, non-compete agreements are generally considered legal. The validity of your non-compete depends on its scope. Arizona courts consider several factors to determine whether the non-compete appears reasonable and is no broader than necessary to protect the employer’s legitimate interests.
Some of these factors include:
- Length of time restrictions. The longer a non-compete agreement lasts, the less likely a court will enforce it. Whether the length of a non-compete makes the agreement invalid can depend on your industry or the nature of your work.
- Geographic scope. An agreement that prevents you from working the same job in too many locations is unenforceable. For instance, a restriction limited to Maricopa County may be acceptable, and a restriction covering the entire United States may not.
- Scope of activity. A non-compete can be a legitimate way of protecting an employer’s investment in its employee. However, employees typically cannot be prevented from working in their field altogether.
- Restrictions on communication. Additional non-solicitation provisions may fail if they prevent an employee from contacting someone with whom the employer has not formed a meaningful relationship.
The key question courts look to answer is whether the restriction is narrowly tailored to protect the employer without unfairly burdening the employee.
How to Beat a Non-Compete
If you want to invalidate a non-compete in Arizona, here are some ways to get ready and possible strategies for fighting the agreement in court.
Highlight the Details of Your Work
Take time to write out your job duties. List the general responsibilities for positions like yours and those specific to your work with your employer. If a non-compete restricts you from performing your general duties at a new job, the court might rule that the non-compete is unreasonable under Arizona law.
Identify Your Employer’s Business Interests
Remember, a non-compete agreement should be narrowly tailored to protect only an employer’s legitimate business interests. When it comes to your employer, be able to answer the following:
- Who are your employer’s competitors?
- What kinds of confidential information do you have for your job?
- Where does your employer do business?
- What business relationships did you create through work?
- What special training did you receive?
Proving that your role did not involve trade secrets, confidential information, direct client contact, or work in certain locations may weaken your employer’s case for enforcement of your non-compete agreement.
Keep Notes on Personnel and Market Trends
A non-compete agreement should not last longer than it typically takes to hire or train someone new for your position or extend beyond the time it takes for confidential information in your field to become obsolete.
Some key notes to keep on your employer’s business include:
- How quickly the employer hires and trains your peers,
- Frequency of changing formulas,
- Implementation of new business procedures,
- Turnover in the employer’s workforce, and
- Ongoing tweaks in products to keep pace with competitors.
The shorter the duration of each of these business practices, the more likely the non-compete becomes unenforceable.
Remember the Value of Bargaining
Employees should also remember that employers must decide whether to invest in litigation even if a non-compete is technically enforceable. Negotiating a resolution may be a way to get out of a non-compete in Arizona. However, having an experienced Phoenix non-compete lawyer is critical in obtaining a settlement that protects your interests to the fullest extent possible.
How Employers Can Protect Themselves
Employers reading this may have concerns about drafting a non-compete that will stand up in court. The key is precision and fairness. Courts are more likely to enforce agreements carefully limited to the company’s actual business needs.
Some tips include:
- Keeping the duration reasonable with restrictions that limit the time period;
- Limiting restrictions to areas where you do business;
- Clearly defining the type of work or clients that are off-limits; and
- Provide something of value in exchange for the employee signing the agreement, such as a promotion or bonus.
Employers should also be prepared for litigation. Arizona courts do not hesitate to narrow or strike down agreements they view as overreaching.
Contact a Phoenix Non-Compete Lawyer Today
Our team at Shields Petitti & Zoldan has nearly 100 years of combined experience. We are also respected leaders in Phoenix’s employment law community. Other attorneys know us. Judges know us. Employers and employees alike know that we are serious when we step into a case. If you need help with your non-compete agreement, contact us online or by phone to schedule a consultation.
Attorney Michael Zoldan provides legal counsel to individuals and small businesses throughout Arizona. Mr. Zoldan’s practice is based on aggressive and detail-oriented representation, focusing on employment discrimination, wage and hour disputes, harassment, and wrongful termination. Prior to forming Shields Petitti & Zoldan, Mr. Zoldan worked for numerous law firms where he had an opportunity to hone his litigation skills by working on multiple litigation cases at a time with some of the most skilled litigators in the state.
Loading...