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  1. #1
    Join Date
    Sep 2008
    Posts
    4

    Default Non Compete

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

    I have recently quit a Printing Company. I did sign a non compete which is for one year. Since leaving, I have been approached from a small handfull of previous customers. I have actually started my own company and I am an indepedent Print Broker. I would like to continue servicing them as this is my only means of employment. While working with my previous employer I was actually considered an employee although I had no salary and was compensated entirely by the commisions I made. I can recall that when I started work with this company, the owner was aware that I had a non compete with my previous company but still constantly urged me to go after my old clients which I finally did. When he found out that I was quitting he threatened me that he would pursue legal action if I pursued any of my existing clients. Can anyone offer solid advice of what I can expect with all of this? Your comments are appreciated.

    Duffer

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Non Compete

    Az. enforces non-competes that are reasonable (have reasonable restraints). You will need to take the non-compete to an employment or contract attorney in your area (state) for his review & advice.

  3. #3
    Join Date
    Sep 2008
    Posts
    4

    Default Re: Non Compete

    Hi Betty,

    Thanks for your advice. How does having the business name completely in my wifes name affect this?

    Duffer

  4. #4
    Join Date
    Aug 2008
    Posts
    17

    Default Re: Non Compete

    I had a similar issue though I was laid off I went to the judge and asked how I am suppose to support my family if I can not work. I told him it be cheaper for the state if I could work and not have to collect unemployment and other state programs.

    They agreed and kicked it out.

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Non Compete

    The standard applied by an Arizona Court in evaluating a non-compete agreement is described in this case:
    Quote Quoting Bed Mart, Inc. v. Kelley, 202 Ariz. 370; 45 P.3d 1219 (2002)
    A covenant not to compete in an employment agreement is "valid and enforceable by injunction when the restraint does not exceed that reasonably necessary to protect the employer's business, is not unreasonably restrictive of the rights of the employee, does not contravene public policy, and is reasonable as to time and space." Phoenix Orthopaedic Surgeons, Ltd. v. Peairs, 164 Ariz. 54, 57, 790 P.2d 752, 755 (App. 1989), disapproved on other grounds, Valley Med. Specialists v. Farber, 194 Ariz. 363, 982 P.2d 1277 (1999). A restrictive covenant is reasonable and enforceable when it protects some legitimate interest of the employer beyond the mere interest in protecting itself from competition such as preventing "competitive use, for a time, of information or relationships which pertain peculiarly to the employer and which the employee acquired in the course of the employment." Farber, 194 Ariz. at 367 P12, 982 P.2d at 1281 (quoting Harlan M. Blake, Employee Agreements not to Compete, 73 HARV. L. REV. 625, 647 (1960)). An employer may also have a legitimate interest in having a "reasonable amount of time to overcome the former employee's loss, usually by hiring a replacement and giving that replacement time to establish a working relationship." Id. at 370 P25, 982 P.2d at 1284 (quoting Blake, supra, 73 HARV. L. REV. at 659).

  6. #6
    Join Date
    Sep 2008
    Posts
    4

    Default Re: Non Compete

    Hi Aaron,

    Thanks for the information. Does anything change with an non compete if your past clients pursue your services unsolicited?

    Duffer

  7. #7
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Non Compete

    You'll need to have your non-compete reviewed by an attorney & ask him your questions.

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