• Home
  • About Us
    • Teammates
    • Ratings
    • Employment
      • Attorney
      • Paralegal
      • Executive Assistant
  • Development
    • Affordable Housing
    • Tax Credit Financing
  • Capital Market Transactions
    • Private Activity Bonds
    • Securities
  • Commercial Transactions
    • Business Entity Formations
    • Buying and Selling Businesses
    • Business Transactions
    • Nonprofits
  • Real Estate
    • Commercial Real Estate
    • Construction Contracts
  • Contact Us
  • Blog
  • Media
    • Press
    • Speaking Engagements
  • Testimonials

Lotzar Law Firm P.C.

Legal talent that pays for itself.
480.905.0300 x103 8687 E. Via de Ventura, Suite 115 Scottsdale, Arizona 85258

Do I Need a Covenant Not to Compete in Scottsdale?

July 10, 2014 by Charles Lotzar

covenant not to compete in scottsdaleA Covenant Not To Compete, or a Non-Compete Agreement, is a contract that an employee signs agreeing not to go to work for a competitor or enter into a competing business. A Covenant Not To Compete may also be a condition of selling a business. A part of the value of the company being sold is derived from the transfer of the brand and good will of the business, and a Covenant Not To Compete protects the new owner from losing that value if the original owner opens a competing enterprise.

Covenants Not To Compete can be very important in protecting customer relationships, trade secrets and proprietary information. Many business enterprises can benefit from the use of a Covenant Not To Compete, if the Agreement is carefully drafted so the Arizona courts will enforce it. An experienced Scottsdale Arizona business law attorney at Lotzar Law Firm, P.C. can help you to determine if a covenant not to compete in Scottsdale and throughout Arizona is helpful to your business and can assist in both writing and enforcing a Non-Compete Agreement.  Call today to learn more.

Is a Covenant Not to Compete Necessary?

A Covenant Not To Compete may be needed if you are trusting any employee with information that you would not want provided to your competitors. Examples of situations where a Non-Compete Agreement would be a good idea to protect proprietary information include:

  • When your business has a direct competitor who would benefit from hiring your workers.
  • When an employee of your organization is developing materials for the company intended to be Patented, Copyrighted or Trademarked.
  • When an employee is given access to trade secrets or to confidential customer information.

Non-Compete Agreements are also important in situations where your workers may form close relationships with individual clients or when clients would come to trust the employee rather than the brand. For example, a massage therapist or a physical therapist may be asked to sign a covenant not to compete so that he or she does not leave an employer and take all of his customers with him.  It is very common for Non-Compete Agreements to be used in the medical or other professional services industries where clients may interact frequently with the same business employee.

Whenever a Non-Compete Agreement is needed, it must be reasonable in scope of work, in geographic area, and in duration for the court to enforce the Agreement. Lotzar Law Firm, P.C. can help you to draft a Covenant Not To Compete in Scottsdale that is likely to be upheld in court and can advise you on the type of protections you need to secure your business interests. Call or contact us online today to speak with a member of our legal team and to learn how we can assist you.

  • Author
  • Recent Posts
Charles Lotzar
Charles Lotzar
With more than 25 years of legal experience, Chuck Lotzar knows how to solve problems and make deals happen. He earned his Bachelor of Arts in Business from Michigan State University in 1982, and his Juris Doctorate from the University of Detroit School of Law in 1985. Mr. Lotzar has extensive experience dealing with public contracts and issues related to public officials and has been involved in bond financings with an aggregate value in excess of $5 billion.
Charles Lotzar
Latest posts by Charles Lotzar (see all)
  • How Often Do I Have to Re-Certify a Tax Credit Tenant’s Household Income? - November 12, 2015
  • Property Tax Abatement vs. Property Tax Exemptions – GPLET - November 12, 2015
  • Can You Restructure Your Business Under the Arizona Entity Restructuring Act? - November 5, 2015

About Charles Lotzar

With more than 25 years of legal experience, Chuck Lotzar knows how to solve problems and make deals happen. He earned his Bachelor of Arts in Business from Michigan State University in 1982, and his Juris Doctorate from the University of Detroit School of Law in 1985. Mr. Lotzar has extensive experience dealing with public contracts and issues related to public officials and has been involved in bond financings with an aggregate value in excess of $5 billion.

Why We’re Not Your Typical Law Firm

logo 8687 E. Via de Ventura, Suite 115 Scottsdale, Arizona 85258 T (480) 905-0300 F (480) 905-0321 E info@lotzar.com

SITE NAVIGATION

  • SITE NAVIGATION
  • Home
  • About Us
  • Teammates
  • Press Coverage
  • What Clients Say
  • Speaking Engagements
  • Contact Us

FROM OUR BLOG

How Often Do I Have to Re-Certify a Tax Credit Tenant’s Household Income?

Property Tax Abatement vs. Property Tax Exemptions – GPLET

Can You Restructure Your Business Under the Arizona Entity Restructuring Act?

REVIEWS

View and rate us
on Google

©2025 Lotzar Law Firm, P.C. All Rights Reserved. | Privacy Policy | Disclaimer