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Can I require employees to sign non-compete agreements in Arizona? What are the requirements?
Non-Compete Agreements in Arizona
In Arizona, non-compete agreements are generally enforceable if they meet certain requirements [1.1]. However, there are some exceptions to this rule.
Broadcast Employees
For broadcast employees, it is unlawful for a broadcast employer to require a current or prospective employee to agree to a noncompete clause as a condition of employment [2.1].
Public Works Contracts
Agencies and political subdivisions of Arizona cannot require contractors or subcontractors to agree to noncompete clauses as a condition of bidding, negotiating, being awarded, or performing work on a public works contract [3.1].
Direct Primary Care Agreements
Direct primary care agreements for dental services are limited to services provided within a single professional practice and may not include services offered by dentists in other practice entities [1.3]. Direct primary care agreements may not require more than twelve months of the periodic fee to be paid in advance, and the provider may not submit a claim for reimbursement to the patient’s health care insurer for primary care services that are covered under the direct primary care agreement [1.4].
Mandatory Provisions of Articles of Incorporation
The articles of incorporation of a close corporation in Arizona shall set forth certain mandatory provisions, but it is not necessary to set forth any corporate powers or purposes [5.1].
Filing Requirements
In order to qualify for filing by the commission, a document shall satisfy the requirements of the Arizona Revised Statutes and any other section of chapters 1 through 17 of this title that adds to or varies these requirements [6.1].
Conclusion
In general, non-compete agreements are enforceable in Arizona if they meet certain requirements. However, there are exceptions to this rule for broadcast employees and public works contracts. It is important to consult with a legal professional to ensure that any non-compete agreement complies with Arizona law.
Source(s):
- [1.1] Direct primary care agreements; requirements; notice
- [2.1] Noncompete clause prohibition; broadcast employees; definitions
- [3.1] Public policy; prevailing wage contract; prohibited agreements; definitions
- [1.3] Direct primary care agreements; dentists
- [1.4] Direct primary care agreements; fees
- [5.1] Mandatory provisions of articles of incorporation
- [6.1] Filing requirements
Jurisdiction
Arizona