Will a non compete hold up In AZ?

I have been in woodworking and building for 20 years. I started at a company 2
years ago, 6 months ago they had me sign a non compete. I have been offered
another position at another similar company and not sure if it would hold up.
both companies have similar products and work AZ and California. I am just a
laborer in the warehouse and make no company decisions for anything.
The non compete is for 3 years and 200 miles. This line of work is all I know and
want to better support my family.

Asked on March 21, 2017 under Employment Labor Law, Arizona

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

AZ will enforce non-compete agreement but only under certain circumstances. First of all, they will not enforce a stand alone non-compete. Instead, they will only enforce such a restriction if it was a part of or "ancillary" to another agreement, such an employment contract, an independent contractor agreement, etc. Secondly, a business must have a legitimate interest if a non-compete is to be enforced, such as protecting its customers, trade secret/proprietary information and goodwill with customers and vendors. Finally, non-compete covenants must be reasonable if the restrictions are limited by geograhpic scope and duration. That having been said, with respect to this last restriction, a non-compete for 3 years or less and within 200 miles is deemed reasonable.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.