HB2361 - Employers; contracts; noncompete clause; prohibition

REFERENCE TITLE: employers; contracts; noncompete clause; prohibition State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 HB 2361 Introduced by Representatives Crews: Connolly, Contreras P, Liguori, Travers, 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_STATUTE 23-207. 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.