Is It Legally Enforceable in Arizona?

Yes — non-solicitation agreements are considered legally binding. Arizona courts have ruled that a term of three years is appropriate.^[1]

In Arizona, licensed physicians are prohibited from entering into a non-solicitation agreement that excludes them from serving former patients.^[2]

Types of Solicitation to Prohibit

In Arizona, a non-solicitation agreement can prohibit an employee from contacting the following individuals after leaving the company:

Former or Current Employees

The employee is prohibited from contacting any former or current employees, contractors, affiliates, and similar parties of the employer under which a business relationship has been created.

Former or Current Customers

The employee is prohibited from engaging with any former or current customers, clients, and similar parties of the employer under which a business relationship has been created.

What to Include

What should you include in a non-solicitation agreement.

1. Time Restraint

In Arizona, a non-solicitation covenant is considered enforceable for up to three years after termination of employment.

2. Geographical Restraint

This limits the terms of the non-solicitation agreement to apply to only a specific area or location that is considered reasonable.

3. Specific Action

The agreement must specify exactly what the employee is restricted from doing (i.e. interfering with the employer’s business relationships) as part of the agreement.