Legal Question in Business Law in Arizona

Employment contract- employer wants me to sign

I have begun work as a real estate appraisal apprentice. To get a real estate appraiser license I am required to work for a licensed appraiser and get 2000 hours of experience. As a condition to work for the appraiser he is asking me to sign a contranct that covers a number of topics.

I can understand the confidential sections, and also the section not to solicit current customers if I should leave after being licensed. However there is a non-compete section that states I cannot start my own appraisal company or work for another appraisal company within 100 miles of his office, for a period of 18 months.

This seems very restrictive not allowing me to work in real estate appraising within the Phoenix area. Would this be enforceable?

Isn't that restricting my ability to make a living? I realize I am getting my training from his company, but that would be like any company training an employee and then telling them they can't work in that field for another company within Phoenix...

Thanks for your help.

Jim


Asked on 10/27/02, 7:53 pm

1 Answer from Attorneys
Robert Lord Berens, Kozub & Lord PLC

Re: Employment contract- employer wants me to sign

Whether your non-compete is enforceable can not be answered with any certainty. There are several factors in your favor, however. First, the non-compete is in an employment agreement context, where the courts don't like to deny an employee the ability to make a living. Second, there are hundreds of appraisers out there. Your entry into the market shouldn't impact your employer all that much. Third, 100 miles seems awfully broad in scope.

Ultimately, your situation may turn on what the agreement says should happen if a court finds the non-compete to be unenforceable? Does it say the court can rewrite the covenant? Does it provide for a reduced geographic area? If it is silent on this point, you could prevail, because a court will not rewrite a non-compete unless the contract authorizes it to do so.

If I can be of further help, feel free to call.

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Answered on 10/28/02, 12:09 am


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