Non-compete law is a specialized branch of employment law. Companies claim that non-competes protect their intellectual property like trade secrets, confidential information, and patents. But non-compete agreements can reach beyond protecting a company’s legitimate business interests.
Arizona allows the enforcement of non-compete agreements, as do most states.
The enforceability of non-compete agreements in Arizona will depend on several factors:
- If the agreement is narrow in scope and to protect business owners’ legitimate interests
- If the non-compete agreements do not violate any Arizona’s public policy
- If the clause is reasonable in duration and scope
- If the employee also benefited from the non-compete clause
Legitimate business interests can be defined as trade secrets, intellectual property rights, and client lists.
What are the Benefits of Non-Compete Laws for Employees?
Before any employee signs on the dotted line of an employment contract, they should see if the employer offers something of value for the employee. It is not unusual for potential employers to offer a raise, bonus or other perks when asking the employee to sign on. When employment contracts are incentivized, the contract will be more enticing for the employee. No matter the context or reason, employees should know non-compete clauses before signing them.
What are the Benefits of Non-Compete Laws for Employers?
The first and most obvious benefits are to prevent former employees from working with a direct competitor and jeopardizing an employer’s legitimate business interests. This may help reduce employee turnover, which decreases costs for the employer. Non-compete clauses can also protect the establishment from an employee who may be tempted to sell trade secrets while still working at the company.
Why Should You Hire a Non-Compete Lawyer in Arizona?
If you’re an employee in a highly specialized industry where you might be privy to trade secrets and confidential information, then you will need legal advice from a non-compete agreements lawyer in Arizona. This includes all cities in Arizona including Phoenix, Tempe, Scottsdale, and all of Maricopa County. This is true of small startups to large, multinational companies. If you’re presented with a non-compete agreement, consult HKM Employment Attorneys before you sign. You don’t want to hinder your ability to make a living simply because your skills are specialized. Know when you might be in breach of a contract before taking a new job.
Talk to our law firm, which will represent your non-compete agreement case before Arizona courts. We negotiate separation agreements as well. Don’t let restrictive covenants of a non-compete clause hurt your future career prospects.