Non-Competition agreements

Some employers enter into with certain employees non-competition agreements. These agreements are alternatively called “non-compete agreements”, “covenants to not compete”, “non-solicitation agreements”, “anti-piracy agreements”, etc. There is, however, a distinction between non-compete agreements and non-solicitation agreements.

A non-compete agreement prevents an employee from, both during his/her employment and after the termination of his/her employment, performing some type of work. Generally, there is both a time and geographic element in non-compete agreements. That is, the employee may not perform a certain type of work for a certain amount of time and within a certain geographic area.

In Arizona and Oregon, courts have shown toward non-compete agreements some level of disapproval. Such agreements must, in order to be enforceable, not restrict activity within too large of a geographic area over too long of a period of time. There are several other requirements for enforceability.

Non-solicitation agreements are different from non-compete agreements, in that non-solicitation agreements prohibit a former employee from soliciting an employer’s customers. They sometimes also prohibit an employee from soliciting an employer’s remaining employees. Courts have not shown toward non-solicitation agreements the same level of hostility they have shown non-compete agreements.

Our office has drafted, reviewed, negotiated, and litigated in court many non-competiton agreements.