Updated April 22, 2024
An Arizona non-solicitation agreement is a contract that prohibits an employee from using an employer’s customers, clients, employees, and contractors for their own benefit after leaving the company. A non-solicitation covenant is commonly signed by an employee at the start of employment or as part of a severance package.
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]
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What Types of Solicitation Can Be Prohibited?
In Arizona, a non-solicitation agreement can prohibit an employee from contacting the following individuals after leaving the company:
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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.
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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 Should Be Included in the Agreement?
1. Time Limit
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.
Related Forms
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Arizona Non-Disclosure Agreement
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