Arkansas Noncompete Agreement: What's Included and Enforceability
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Is a Non-Compete Agreement Enforceable in Arkansas?
A non-compete agreement is a type of restrictive employment contract that prevents an employee from using a business’s trade secrets or other confidential information to compete with the business. In Arkansas, a non-compete agreement is only enforceable if it adheres to the following three conditions:
- It is part of an enforceable employment contract
- The employer has a legitimate protectable business interest
- The contract is limited in time and scope and is not more restrictive than necessary to protect the employer’s business interest
The Arkansas code lists confidential information which can be considered a “protectable business interest”. This includes:
- Trade secrets
- Intellectual property
- Client lists
- Knowledge or methods of business practices
- Training and education information
- Employee data
How Long Does an Arkansas Non-Compete Agreement Last?
Arkansas state statutes restrict the duration of a non-compete agreement to two years. However, this statute allows courts to consider the circumstances around the case to determine if two years is unreasonable.
How Do You Get Around a Non-Compete Agreement in Arkansas?
Non-compete contracts in Arkansas are enforced only when they are reasonable and used to protect a legitimate business interest. To get around a non-compete agreement, the employee would have to prove that the contract is unreasonable or that the employer doesn’t have a legitimate business interests.
To determine reasonability, courts will usually consider the following factors:
- Duration of the contract
- Geographical scope of the contract
- Whether the contract prevents an employee from earning a wage
- The nature of the business
What Voids an Arkansas Non-Compete Agreement?
An Arkansas non-compete agreement will be deemed void if it does not protect a legitimate business interest or if the terms are so broad that it places an unfair burden on the employee.
Even though Arkansas permits blue penciling, which is the practice of allowing courts to modify a non-compete to make it enforceable, courts use this power sparingly to avoid overreaching.
Frequently Asked Questions
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Meet some of our Arkansas Noncompete Agreement Lawyers
Michael C.
I offer top-tier legal expertise in startups, corporate governance, and general legal research. As a professor and published author, I have established myself as a legal expert, writer, and scholar. My strong research skills and innovative thinking make me a highly capable business consultant, legal adviser, and copywriter. Currently licensed to practice in Minnesota and Arkansas. Recent freelance projects include business plans, contract drafting, legal advisory memoranda, due diligence, pre-trial motion practice, and discovery review.
"Michael was fast, helpful, and delivered exactly what I asked for!"
Alan B.
At Barker Law, we provide clients with superior service in trust, probate, and estate matters and litigation, contract drafting and review, outside general counsel services, negotiation, commercial litigation, and regulatory navigation. We confidently handle transactional and regulatory matters for businesses and individuals. As our feedback shows, we excel at meeting and exceeding our clients needs.
October 1, 2023
Lynette P.
I am licensed in both Texas and Arkansas but actively working in Arkansas. My primary focus is criminal defense, family law, and estate planning (wills and trusts).
October 30, 2023
James S.
https://www.linkedin.com/in/james-swindle/
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Meet some of our other Noncompete Agreement Lawyers
Elizabeth W.
Liz is an experienced insurance professional, having worked with carriers and brokers for over 10 years. She can review or draft a variety of commercial agreements and is here to help your business. Specialties include: Master Service Agreements, business process outsourcing, marketing and partnership agreements, broker agreements, business associate agreements, and NDAs.
"Liz was very helpful and thoughtful through the whole process. She answered all of my questions along the way."
December 13, 2021
Philip M.
I have been a freelance attorney for several years and have many of my clients returning to me for continued work because of the quality I produce.
January 4, 2022
Amy Sue L.
Ms. Leavens is a corporate attorney with 10 years of experience as the General Counsel, Chief Compliance Officer and Corporate Secretary of a Congressionally chartered, non-profit corporation, and more than 20 years of experience as an advisor to executive officers and boards of directors in for-profit and non-profit organizations. She has substantial experience within in-house legal departments managing cross-functional teams comprised of multiple business units and attorneys on large-scale mission critical projects, and within a global law firm as a manager of public and private, domestic and international, multi-party business transactions. She has unique experience implementing government-sponsored business initiatives. Ms. Leavens was honored in 2015 as one of Washington, D.C.’s Top Corporate Counsel by Bisnow and the Association of Corporate Counsel; nominated in 2014 for the Association of Corporate Counsel (WMACCA) Outstanding Chief Legal Officer Award; and the recipient in 2014 of WMACCA’s Community Service Award.
Employment
Noncompete Agreement
Connecticut
Noncompete agreement and promotions?
I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.
Thomas L.
It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.
Contracts
Noncompete Agreement
Florida
Noncompete agreement and severance packages?
I recently left my job of 5 years, where I had signed a non-compete agreement. I am now negotiating a severance package with my former employer and am unsure of what my rights and obligations are regarding the non-compete agreement. I am seeking clarification on how the non-compete agreement should be handled in relation to the terms of my severance package.
Diane D.
To be able to answer this question, I would need to see the agreements. No one can answer your question without seeing the agreements.
Employee Rights
Noncompete Agreement
Florida
Noncompete agreement geographic scope?
I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.
Daniel D.
The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.
Employment
Noncompete Agreement
Connecticut
Noncompete agreement and change of control?
I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.
Thomas L.
If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.
Employee Rights
Noncompete Agreement
Georgia
How does a noncompete agreement work?
I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.
Nancy B.
In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett
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