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LEV, Retired
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Experience:  Taxes, Immigration, Labor law
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Hi, I worked for a salon for the last 4 years as a ...

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Hi, I worked for a salon for the last 4 years as a manicurist. Just last year (after working for them for 3 years already) they made me sign a noncompete form. It states several things, one being that i cannot work within 5 miles of them, solicit clients, etc. I signed it because i felt i would lose my job if i didnt and now that i''ve left, i have clients following me to my new location. Do I have to worry about being sued or are noncompete agreements just to scare people? thx. Tina in AZ

Dear Tina,

Noncompete Agreement is a valid contract (or clause in the employment contract) that generally enforceable.

If you would take away clients from your current employer - the employee may sue you for damages that include lost of revenue, legal expenses, etc

Especially if you are not an employee (receiving W2) but a self-employed contractor(receiving 1099-misc).

Some states will not enforce a noncompete agreement against employees and some will limit the use of such agreements. - Please see this Arizona specific analysis on how AZ courts treat noncompete agreements in different situations -

So - a noncompete agreement may be a powerful legal instrument.

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