In Arizona, non-compete agreements are enforceable but only if they are “reasonable.” In determining whether a non-compete is “reasonable,” courts evaluate several factors:
Duration. Courts evaluate how long it would take to find and properly train a replacement for the employee at issue. If it would take 6 months to find and train a replacement, then a 6-month non-compete should be considered “reasonable.”
Geographic Scope. Courts evaluate whether the company ha customers or other connections within the applicable geographic area.
The type of activity prohibited. Many non-compete agreements state that the employee cannot work in any position. This means that a salesman could not work for a competitor, even as a janitor. That kind of limitation is generally not considered “reasonable.”
You should consult an experienced attorney before making any important decisions related to a non-compete or non-solicit agreement. This is a tricky area of the law that can lead to costly litigation.