Non-compete laws · AZ
Arizona physician non-compete law
As of October 21, 2026, Arizona has no statute specific to physician non-competes; general non-compete law and court decisions apply.
No physician-specific statuteChecked 2026-10-21
No physician-specific statute. Noncompetes are judged case by case for reasonableness; the Arizona Supreme Court (Valley Medical Specialists v. Farber, 1999) strictly construes physician covenants, weighing patients' choice of doctor, and courts may strike severable terms but not rewrite them. (Arizona Revised Statutes, Title 23 index (Article 15, Noncompete Clauses))
Who it covers
All employees under common law. No clinician-specific noncompete statute; Arizona's only noncompete statute (A.R.S. § 23-494) covers broadcast employees.
Notes
Farber places the burden on the party enforcing the covenant and weighs patient choice and continuity of care; courts may strike severable terms but not rewrite them. General noncompete bills (HB 2589 in 2025, HB 2361 in 2026) were not enacted.
Bills that have not become law
Non-compete bills from the 2025 and 2026 sessions that had not become law as of 2026-10-21, furthest along first. A bill that died has to be filed again to move in 2027. The 2027 session starts 2027-01-11 and ends no fixed date (usually April to June).
- HB 2361 (2026) · All workers
Reintroduction of HB 2589: would bar employers from requiring noncompete clauses
Introduced · Died. Introduced 2026-01-14 (Rep. Crews + Democratic cosponsors); assigned House Commerce and Rules 2026-01-20; never heard; 'Held in Committees'; died at 2026 sine die
- HB 2589 (2025) · All workers
Would make it unlawful for public or private employers to require noncompete clauses (new A.R.S. 23-207)
Introduced · Died. Introduced 2025-01-16 (Rep. Crews + Democratic cosponsors); assigned House Commerce and Rules 2025-01-27; never heard; final disposition 'Held in Committees'
Sources
- Valley Medical Specialists v. Farber, 194 Ariz. 363, 982 P.2d 1277 (1999) (court)
- Arizona Revised Statutes, Title 23 index (Article 15, Noncompete Clauses) (statute)
Questions to ask about your contract
- Is the radius measured from your practice site or from every location the employer owns?
- Does the restriction apply if the employer terminates you without cause?
- Is there a buyout, and how is the amount calculated?
- What does your state's law say about physician non-competes?
Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Arizona.