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  1. #1

    Default When Will a Noncompete Stand Up in Court

    My question involves labor and employment law for the state of: Arizona

    My husband had worked for a company for a year and 4 months before they asked him to sign a non-compete agreement. He did not receive anything extra for signing this agreement (no promotion, no raise). The non-compete says that he can not work within a 500 mile radius of the company doing the same thing he does now (he sales industrial adhesives & other items like that) and its for 2 years after termination. He found out that he is the only person they had sign the agreement. There are 4 other sales guys and they know the exact same things as my husband. So any of the other sales guys can leave and go to a competitor without a problem. Now one of their competitors is wanting my husband to come work for them and we are trying to figure out if the non-compete agreement would stand up in court. I just want to throw in that my husbands job is in Tucson and we live in Mesa - Over a 125 miles apart. The potential job is up in Phoenix which is less than 15 miles from where we live.

  2. #2

    Default Re: Non-Compete Seems Excessive New York

    First, you need a separate thread for your question.

    Second, it would behoove your husband to consult directly with local counsel to determine if there is any basis for nullifying the non-competition agreement. Considering the potential impact of violating a valid non-compete agreement, it would be money well spent for him to pay a consultation and/or a couple of hours of attorney time to receive a fairly definitive answer.

    FWIW, the 500 mile radius provision appears sketchy. In contrast, the other terms and factors you describe appear more defensible. Local counsel can in all likelihood determine whether the 500 mile radius and/or any other provision would pass muster with the Arizona courts.

  3. #3
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,276

    Default Re: Non-Compete Seems Excessive New York

    Quote Quoting ESteele
    View Post

    FWIW, the 500 mile radius provision appears sketchy. In contrast, the other terms and factors you describe appear more defensible. Local counsel can in all likelihood determine whether the 500 mile radius and/or any other provision would pass muster with the Arizona courts.
    I'm pretty sure that a 500 mile radius (~1500 sq. mi.) is not going to pass the test in AZ

  4. #4
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Non-Compete Seems Excessive New York

    In Az. only reasonable restraints will be enforced as to time & territorial limitations. Doubt 500 mi. would be reasonable.
    However, an attorney needs to review the agreement.
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