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Home Business Non-Compete Agreement Arizona

Arizona Non-Compete Agreement Template

Use our Arizona Non-Compete Agreement to prevent a person or business from competing with your company.

Updated May 19, 2023 | Legally reviewed by Brooke Davis

An Arizona Non-Compete Agreement is a legal document businesses use to protect sensitive and proprietary information in Arizona. It’s an agreement that prevents former employees from using information like customer data, product designs, pricing information, and more in a new job with a competing business.

The following can all be protected by non-compete agreements in Arizona:

  • Trade Secrets
  • Confidential information
  • Customer relationships
Table of Contents
  • Is a Non-Compete Legally Enforceable in Arizona?
  • Reasonable Use and Exceptions
  • Non-Compete Agreement Arizona Limitations
  • Arizona Non-Compete Agreement Sample

Is a Non-Compete Legally Enforceable in Arizona?

Yes, non-compete agreements are legally enforceable in Arizona. Some rules and restrictions exist, but most non-compete agreements are generally allowed.

Arizona law states that non-compete agreements should not be broader than necessary, so it is wise to keep the contract narrow in scope if possible. Use it only to protect the essential data and interests, and don’t make it broad in scope. If you make your agreement broader than necessary, it could be challenged in court and ultimately struck down. The guidance below can help you avoid that outcome.

Reasonable Use and Exceptions

Below are some guidelines for reasonable uses for non-compete agreements in Arizona and some exceptions to consider.

Reasonable uses:

  • No broader than necessary to protect the employer’s legitimate business interest
  • Not unreasonably restrictive
  • Not contrary to public policy
  • Ancillary to another contract

Arizona has only one exception in which non-compete agreements are not allowed:

  • Broadcasters

It would be best if you also kept in mind the following FAQs:

Enforceable when terminated without cause? – Not decided

Employee non-solicitation agreement permitted? – Yes

Customer non-solicitation agreements allowed? – Yes

Does continuing employment equal sufficient consideration? – Yes

Non-Compete Agreement Arizona Limitations

Arizona has some limitations regarding duration and location.

Limitations on time

Arizona law does not state a specific time limitation on non-compete agreements. Instead, the law states that the contract should be reasonable to protect the position and knowledge. While a two-year agreement could be reasonable for a high-level executive, it may not be for a lower-level worker with limited access to sensitive information. Generally, agreements should lean on being as short as needed.

Geographical Limitations

Arizona does not have a specific statute on geographical limitations in non-compete agreements. However, Arizona does have a statute that agreements should not be more broad than necessary. In that light, you may want to keep your agreement to a small area or define it by industry or competitors rather than a geographic area.

Arizona Non-Compete Agreement Sample

Below, you can download a free Arizona Non-Compete Agreement template in PDF and Word format.

non compete agreement template

Download PDF
Download MS Word
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Start building your Arizona Non-Compete Agreement here.

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non compete agreement template

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