Occupation limits
Arizona Non-Compete Law (2026): Allowed; broadcast exempt
Arizona leaves most non-compete disputes to a rule-of-reason balancing test, asking whether the restraint is no greater than needed for the employer, whether it is unduly harsh on the worker, and whether it damages the public. One industry is walled off entirely: broadcast employers cannot require current or prospective staff at TV or radio stations and networks to sign a non-compete. Employers get little forgiveness for overbroad drafting because Arizona will strike grammatically severable language but will not rewrite a clause.
The rule
How Arizona treats non-compete agreements
The Farber public-interest strand gives healthcare workers a stronger argument than the bare reasonableness test suggests, even though Arizona never enacted a physician-specific ban. And because Arizona will not judicially rewrite, a single overbroad phrase can sink an otherwise defensible covenant.
If you are an employer
Arizona's blue-pencil practice is unforgiving, so build the covenant in severable subparts and keep the geographic and temporal reach tethered to the accounts the employee actually touched.
If you are a worker
If you work on-air or behind the scenes at an Arizona radio or television outlet, the non-compete is prohibited by statute; everyone else should test whether the restriction sweeps in territory or customers the employer never assigned them.
| Classification | Common-law rule of reason plus a broadcast-industry prohibition |
|---|---|
| Pay threshold | No pay threshold |
| Maximum term | No statutory ceiling. Courts assess duration case by case, and restrictions materially longer than the time it takes an employer to protect its customer relationships tend to fail. |
| Notice or consideration | No statutory notice or waiting period. |
| Primary statute | Ariz. Rev. Stat. § 23-494 (broadcast employees); all other workers governed by common law |
Detail
What has changed, and what is still moving
Legislation 2024–2026
None enacted. The broadcast prohibition at A.R.S. § 23-494 remains the only non-compete-specific statute on the books, and it long predates the 2024-2026 window.
Bills to watch
No significant restrictive bills pending. HB 2589 (2025), a Democratic-sponsored prohibition on employer non-compete clauses, never left committee and is dead.
Leading cases
Valley Medical Specialists v. Farber (Ariz. 1999) is the leading decision, striking a physician non-compete and stressing that the public interest in continuity of medical care weighs heavily in the balance. Arizona courts also apply a strict blue-pencil rule, deleting offending words rather than rewriting the clause.
If you have one in hand
What can make a non-compete unenforceable in Arizona
- Your occupation is carved out. Common-law rule of reason plus a broadcast-industry prohibition
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Arizona.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Arizona non-compete questions
Are non-compete agreements enforceable in Arizona?
Arizona leaves most non-compete disputes to a rule-of-reason balancing test, asking whether the restraint is no greater than needed for the employer, whether it is unduly harsh on the worker, and whether it damages the public. One industry is walled off entirely: broadcast employers cannot require current or prospective staff at TV or radio stations and networks to sign a non-compete. Employers get little forgiveness for overbroad drafting because Arizona will strike grammatically severable language but will not rewrite a clause.
How long can a non-compete last in Arizona?
No statutory ceiling. Courts assess duration case by case, and restrictions materially longer than the time it takes an employer to protect its customer relationships tend to fail.
Is there a minimum salary for non-competes in Arizona?
No. Arizona sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Arizona require?
No statutory notice or waiting period.
Sources
How this entry was checked
- Primary source. Ariz. Rev. Stat. § 23-494 (broadcast employees); all other workers governed by common law — the statutory text itself.
- Secondary sources consulted. Ariz. Rev. Stat. § 23-494 (Justia), Valley Medical Specialists v. Farber (Ariz. 1999), LegiScan AZ HB 2589 (2025), Foley & Lardner 2026 overview.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.