Az Non Compete Agreements

A trade secret is information that gives your business a competitive advantage because it is not known to everyone and cannot be easily learned by others who might benefit from it. It may be a formula, pattern, compilation, program, device, method, technique or process that you have done to keep it a secret. If an employee who has access to trade secrets – either because the employee has resigned or been fired – he or she could use this information for his or her personal benefit (and at the expense of employers). For example, a former employee may open a competing business or go to work for a competitor and unknowingly or intentionally reveal your hard-earned keys to succeed. A duly developed non-competition agreement can prevent this. A court generally considers three factors in determining whether a non-compete agreement is appropriate or not: Arizona courts have the option of making non-compete clauses a «blue pencil» in order to eliminate inappropriate provisions of non-competition agreements while leaving the rest of the agreement unresolved. Therefore, a non-competition agreement is not completely invalid because of an inappropriate provision. A non-competition agreement is not enforced by a court unless it proves that its requirements are reasonably necessary to protect legitimate business interests. But to protect these interests, companies cannot retain employees who have provided special, unique or exceptional services to the company. The first factor taken into account is whether there is a good business reason for asking an employee to sign the agreement. Some common reasons for requiring an employee to sign a non-compete clause are the protection of trade secrets, the protection of customer information or prices, or the possibility of having sufficient time to train new employees. For the non-compete agreement to be implemented in the state of Arizona, it must have some tangible benefits for the worker concerned.

To encourage an employee to sign the contract, the employer often offers something valuable, such as a raise, promotion or bonus. These temptations are generally sufficiently advantageous for staff and can therefore be applied. The courts will not enforce non-competition prohibitions that they deem too restrictive. They may decide that they limit too many activities, that they last too long or that they cover too much geography. 3) Were valid considerations taken into account when the non-competition clause was signed? When a worker with the authorization signed a non-compete agreement at the beginning of his employment or even in the middle of his employment with the employer, the Arizona courts found that the continued employment of the worker in question was considered a valid consideration for that worker.

Entradas Relacionadas:

If you enjoyed this post, make sure you subscribe to my RSS feed!
Catergorias: Sin categoría

Si te gusto esta entrada, puedes dejar un comentario o subscribirte a nuestro feed y recibir futuras entradas en tu lector de feeds.

Comments are closed.