Results 1 to 4 of 4

Hybrid View

  1. #1
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: How Will My Non Compete Restrict Me

    Concur with Betty.

    In some states, non-compete agreements have been held to be unenforceable, except in certain narrowly defined circumstances. This varies from state to state and contract to contract.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: How Will My Non Compete Restrict Me

    In Arizona,
    Quote Quoting Bed Mart 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).
    Although I'm not offering a definitive analysis, the clause you describe has a reasonable basis - an employer can be harmed if an employee takes advantage of inside information such as customer lists and order histories, or lures away some key employees, and starts a business in the same field targeting the same customers. But the two year scope may be pushing things.

    Given the risk and cost of starting a business, I suggest following the prior recommendation of running your contract past a lawyer. You don't want to get hit with an injunction just as you start making sales.

    1. Sponsored Links
       

Similar Threads

  1. Should I File a Motion to Modify or Restrict Parenting Time
    By tiffany00702 in forum Child Custody, Support and Visitation
    Replies: 7
    Last Post: 02-10-2011, 02:38 PM
  2. Modification of Custody: Filing to Modify Parenting and Restrict Parenting Time
    By da3ley in forum Child Custody, Support and Visitation
    Replies: 6
    Last Post: 08-04-2010, 07:10 PM
  3. Business Issues: Manufacturer's Right to Restrict Redistribution of its Products
    By arckonline in forum Business Law
    Replies: 1
    Last Post: 01-21-2010, 12:07 PM
  4. Can My Landlord Restrict My Boyfriend from Coming Over?
    By drseamus in forum Landlord-Tenant Law
    Replies: 3
    Last Post: 08-17-2008, 05:45 AM
  5. Can HOA Restrict Parking for One Household but Not for All?
    By CAOC in forum Real Estate Ownership and Title
    Replies: 2
    Last Post: 07-09-2008, 05:56 PM
 
 
Sponsored Links

Legal Help, Information and Resources