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Non-Compete Laws in Arizona

Arizona courts enforce employee non-competes only when they are reasonable and no broader than needed to protect the employer's legitimate interests, and state law bars non-competes for broadcast employees.

Last checked . General information, not legal advice.

Arizona at a glance

Status
Enforceable if reasonable (case law)
Broadcast employers may not require non-competes (A.R.S. 23-494).
Enforceable against employees
Yes, if reasonable
Courts apply a rule of reason; non-competes for broadcast employees are unlawful.

Sources

Last checked

The rules in Arizona

Are employee non-compete agreements banned, restricted or enforceable in Arizona?

Status in Arizona: Enforceable if reasonable (case law). Broadcast employers may not require non-competes (A.R.S. 23-494).

Can an employer enforce a non-compete against an employee in Arizona?

Yes, if reasonable. Enforceable against employees in Arizona: yes, if reasonable. Courts apply a rule of reason; non-competes for broadcast employees are unlawful.

Where do the Arizona non-compete laws come from?

The rules above come from A.R.S. 23-494 and Valley Medical Specialists v. Farber, 194 Ariz. 363 (1999). Each source is linked on this page. We last checked them in October 2026.

Good to know

In Valley Medical Specialists v. Farber (1999), the Arizona Supreme Court held that physician covenants are strictly construed for reasonableness.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.