Effective on August 6, 2016, Arizona law on employment relationships will allow employers contracting with an independent contractor to prove the existence of such a relationship by having the independent contractor sign a declaration. Under the new law, the execution of a declaration creates a rebuttable presumption that an independent contractor relationship exists.
Articles Discussing Human Resources Issues In Arizona.
Arizona Supreme Court Holds the Arizona Uniform Trade Secrets Act Does Not Preempt Tort Claims Based on Misappropriation of Confidential Information
On November 19, 2014, the Arizona Supreme Court ruled in Orca Communications Unlimited, LLC v. Noder that the Arizona Uniform Trade Secrets Act (AUTSA) does not preempt common law tort claims for misappropriation of confidential information that does not rise to the level of trade secret information.
Arizona Court of Appeals Decision Will Cause Employers to Reevaluate Restrictive Covenants Contained in Employment Agreements
On October 17, 2013, in Orca Communications Unlimited v. Noder, Pitch Public Relations, the Arizona Court of Appeals held the confidentiality, non-solicitation, and non-competition provisions of an employment agreement between an employer and its former president were overly broad and unenforceable. Arizona employers should review their employment agreements to ensure language is narrowly tailored to only protect the legitimate business interests of the employer.
Confidentiality, Non-Compete Agreements Unenforceable against Former Employee, Arizona Court Holds
Striking four restrictive covenants in an employment agreement as overbroad, the Arizona Court of Appeals affirmed the dismissal of a breach of contract claim against the president of a public relations firm who set up a business competing with her former employer. Orca Communications Unlimited, LLC v. Noder, No. 12-0183 (Ariz. Ct. App. Oct. 17, 2013). However, the Court allowed claims for breach of the covenant of good faith and fair dealing, breach of the duty of loyalty, tortious interference, and unfair competition to proceed, finding they were not preempted by the Arizona Uniform Trade Secrets Act.
Non-Compete Overbroad, Business Tort Claims Preempted by Arizona Trade Secrets Act, Federal Court Rules
An employer’s non-competition agreement with its employees was overbroad, unenforceable on its facts and could not be saved by the “blue pencil” rule, Judge Neil V. Wake of the U.S. District Court for the District of Arizona has ruled in an action for alleged violations of restrictive covenants and business torts. Unisource Worldwide, Inc. v. Swope, No. No. CV-12-02036-PHX-NVW, 2013 WL 4029170 (D. Ariz. Aug. 8, 2013). Noting that “Arizona law does not look kindly upon restrictive covenants,” the court, however, permitted the employer’s breach of customer and employee non-solicitation claims to proceed because additional facts were required to determine whether they were reasonable.
Medical Marijuana Dispensaries Are Now Operating in Arizona
On December 3, 2012, an Arizona Superior Court judge issued an order holding that the federal Controlled Substances Act (CSA) does not preempt the Arizona Medical Marijuana Act. Three days later, the first medical marijuana dispensary opened in Arizona.
Arizona’s Highest Court Refuses to Find Employer Vicariously Liable for Employee’s Business Trip Car Accident
On July 9, 2012, the Arizona Supreme Court handed down its decision in Engler v. Gulf Interstate Engineering, Inc. and announced that an employer may not be held vicariously liable for an after-work accident caused by an employee who was on an extended out-of-town assignment. The court found that an employee who worked for the Texas-based energy consulting company Gulf Interstate Engineering, Inc. was not acting within the scope of his employment when he struck a motorcyclist with his car.
Arizona Voters Pass Medical Marijuana Proposition
By a margin of just 4,341 votes, Arizona voters decided to make their state the fifteenth to allow the use of medical marijuana. The “Yes” vote on Proposition 203 had trailed for nearly a week following Election Day, but made a surprising comeback as absentee and provisional ballots were counted. The measure was opposed by the Arizona Chamber of Commerce and other business groups.