2 YEAR NON-COMPETE TERM- Fuzzy
Hi Mel,
My AZ law states that non-competes are allowed if they expire 2 years after employment date. I have been employed for one yeasr, but my employer is now asking me to sign a non-compete. Therefore would it expire one year from now, or two years from the day I signe? Thank you so much
Answers (1)
2 years is not a magic number
Your question seems to be referring to a bill that was introduced in the legislature but, as far as I know, did not pass. It would have made non-compete agreements lawful as long as they did not extend more than two years beyond the date of termination of employment. The wording of the agreement dictates how long it runs. Most non-compete agreements run for a period of time that begins at the termination of employment, not at the hire date or date of signing. The question whether the agreement is enforceable depends upon whether the length of time is reasonable, which varies from one industry to another. The courts will usually want to know how long it will take to recruit, hire and train a replacement and how long it will take the replacement to step into your shoes. It is hard to imagine a situation in which an employer could not accomplish that within two years. If you are reluctant to sign, I would suggest that you consult with an attorney and have him or her read the entire agreement.
posted by Francis Fanning | Aug 11, 2004 5:13 PM [EST]
Your question seems to be referring to a bill that was introduced in the legislature but, as far as I know, did not pass. It would have made non-compete agreements lawful as long as they did not extend more than two years beyond the date of termination of employment. The wording of the agreement dictates how long it runs. Most non-compete agreements run for a period of time that begins at the termination of employment, not at the hire date or date of signing. The question whether the agreement is enforceable depends upon whether the length of time is reasonable, which varies from one industry to another. The courts will usually want to know how long it will take to recruit, hire and train a replacement and how long it will take the replacement to step into your shoes. It is hard to imagine a situation in which an employer could not accomplish that within two years. If you are reluctant to sign, I would suggest that you consult with an attorney and have him or her read the entire agreement.
posted by Francis Fanning | Aug 11, 2004 5:13 PM [EST]
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