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Non-Compete Agreement Arizona Arizona’s non-compete agreement bestows protection for the reasonable interests of employers as well as the employee’s right to earn a living. The impeding covenants defined in non-compete agreements must be reasonable in time and geographic area. This restriction cannot be longer than necessary to safeguard the business interest. This is generally measured by how long it will take to hire and train a replacement employee and develop customer relationships. When setting the geographic area for your non-compete agreement you should consider that the greater the geographic area, the less likely it is for the former employee to earn a living. In fact, in the state of Arizona, no court has ever upheld a non-compete agreement that specifies the geographic area as the entire state of Arizona.  When deciding on the length of time to set for your non-compete agreement you should keep in mind that the larger the geographic area, the smaller the duration. A duration greater than 6 months is not likely to be enforceable in Arizona unless the employer is able to provide proof that a longer period is necessary to hire and train a new employee.  Overall, non-compete agreements are effective in protecting businesses from unfair competition and wrongful acts. 

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