REFERENCE TITLE: employers; contracts; noncompete clause; prohibition

State of Arizona

House of Representatives

Fifty-seventh Legislature

First Regular Session

2025

HB 2589

Introduced by

Representatives Crews: Aguilar, Contreras P, Garcia, Márquez, Peshlakai, Simacek, Stahl Hamilton, Villegas

AN ACT

amending title 23, chapter 2, article 1, arizona revised statutes, by adding section 23-207; relating to employment.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 23-207, to read:

START_STATUTE23-207. Public employer; private employer; noncompete clause; prohibition; definition

A. As a condition of employment, it is unlawful for a public or private employer to require a current or prospective employee to agree to

a noncompete clause.

B. For the purposes of this section, "noncompete clause" means a clause in an employment contract with an employee that prohibits the employee from working in a specific geographic area for a specific period of time after leaving that employment. END_STATUTE

Sec. 2. Applicability

Section 23-207, Arizona Revised Statutes, as added by this act, applies to contracts entered into on or after the effective date of this act.