Non-Solicitation Clauses in Arizona: What to Know
Arizona's Stance on Non-Solicitation Agreements
Arizona courts generally enforce non-solicitation agreements when they are narrowly tailored and reasonable. While Arizona does not have a dedicated statute for non-solicitation clauses, courts apply established common law principles derived from cases like Amex Distributing Co. v. Mascari and Orca Communications Unlimited v. Noder.
Factors Arizona Courts Evaluate
To be enforceable in Arizona, a non-solicitation clause typically must satisfy these requirements:
- Protectable interest: The employer must have a legitimate interest to protect, such as customer goodwill, trade secrets, or specialized training investments
- Reasonable duration: Arizona courts favor restrictions lasting one to two years. Longer periods require stronger justification
- Narrow scope: The clause must be limited to customers or clients you personally served or had substantial contact with
- Adequate consideration: For new hires, the employment itself is typically sufficient. For existing employees, additional consideration is generally expected
Red Flags to Watch For
- Clauses that prevent you from serving any customer of the company, regardless of your involvement
- Restrictions that extend beyond two years without clear justification
- Vague definitions of "solicitation" that could include passive acceptance of business
- Language so broad it functions as a disguised non-compete
Reformation Power
Arizona courts may reform or "blue pencil" an overly broad non-solicitation clause to make it reasonable, rather than striking it entirely. This judicial flexibility means employers may draft aggressive restrictions, counting on courts to trim them down.
When to Consult a Lawyer
Consider contacting an Arizona employment attorney if you have been asked to sign a non-solicitation clause that seems overly broad, if you are starting a new position and are concerned about obligations from your previous job, or if your former employer is threatening legal action over alleged solicitation of clients.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.