Non-compete Clause


This is an employee non-compete clause (also known as a non-competition clause or covenant not to compete) intended for use in an agreement that is subject to Arizona law. This clause includes practical guidance, drafting notes, and alternate clauses. A traditional non-compete prohibits competing activities by an employee, typically for a specified period and often within a designated geographical area. Such covenants raise restraint-of-trade and other public policy concerns, and many states restrict their use by statute or common law. In Arizona, non-compete enforceability is generally a matter of common law, except for specific rules regarding broadcasters (Ariz. Rev. Stat. § 23-494) and attorneys (Ariz. Rules of Prof'l Conduct R. 5.6). See the drafting notes for additional state law guidance and other matters. For additional boilerplate terms to consider when incorporating a non-compete into an agreement, see Non-compete, Customer and Employee Non-solicitation, and Confidentiality ...