Non-Compete Agreements

Non-compete agreements are typically viewed from two points of view: as an employer or as an employee.

As an employer, a non-compete agreement serves a valuable purpose: protecting your company from employees improperly using confidential information gained during the employment relationship to compete with you later. However, non-compete agreements must be reasonable and limited in time, industry, and geographic area. Finally, like all other contracts, non-compete agreements must be bargained for. The easiest way to do this is to require a non-compete agreement to be signed at the commencement of employment. Non-competes that are signed when an employee is terminated are open to challenge and invalidation by a court. To see whether a proposed or existing non-compete agreement is likely to survive a challenge in Arizona, or to draft an Agreement that is likely to survive an employee challenge, Owens & Perkins can help.

From the employee perspective, non-compete agreements are frequently a necessary evil. During the course of employment, employees learn various things about their employers that, if used improperly, could harm the business. Things like business practices, marketing techniques, contacts, and customer lists all typically fall under the protection of non-compete agreements. However, non-compete agreements must be reasonable. They cannot prohibit you from ever earning a living, or be overbroad in their geographic or industry reach. Any non-compete agreement should be reviewed by a lawyer prior to signing.

If you want to contact Owens & Perkins regarding a non-compete agreement, click here.