Arkansas Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers
- Avg cost to draft a Non-Compete Agreement: $550.00
- Avg cost to review a Non-Compete Agreement: $360.00
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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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"First draft that was delivered didn’t meet expectations. Initially offered to do more work if I paid more. Did agree to take a more comprehensive look and provided services. Very prompt"
Meet some of our other Noncompete Agreement Lawyers
Rhea d.
Rhea de Aenlle is a business-savvy attorney with extensive experience in Privacy & Data Security (CIPP/US, CIPP/E), GDPR, CCPA, HIPAA, FERPA, Intellectual Property, and Commercial Contracts. She has over 25 years of legal experience as an in-house counsel, AM Law 100 firm associate, and a solo practice attorney. Rhea works with start-up and midsize technology companies.
"Rhea is very knowledgeable, responsive, and a pleasure to work with. She provided excellent guidance throughout the MSA and BAA process, and I highly recommend her services."
April 14, 2023
Sonya A.
Experienced Attorney with a demonstrated history of working in the law practice industry. Skilled in Preparation of Wills, Trial Practice, Estate Administration, Trusts, and Estate Planning. Strong legal professional with a Juris Doctorate focused in Law from Howard University School of Law.
April 14, 2023
Karen M.
Karen V. Mills is the founding member of the woman-owned boutique law firm Mills Law, LLC, based in Atlanta, Georgia, specializing in contracts, corporate transactional and business law.
Business
Noncompete Agreement
Florida
Noncompete agreement and business partners?
I am a business owner who has recently acquired a new partner. We are in the process of drafting a Noncompete Agreement to ensure that neither of us will compete against each other in the same market. We are looking for advice on what should be included in the agreement and how it should be enforced.
Daniel D.
The one thing to make sure with noncompete agreements is that it is reasonable in terms of duration and the area you cannot compete in. Courts use a reasonableness test to determine whether a noncompete agreement is valid. If provisions are deemed to be unreasonable and fail the test, they could be altered or struck out of the agreement.
Employment
Noncompete Agreement
Missouri
Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?
I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?
Matthew S.
No, this at worst is a civil matter and not a criminal matter. F
Employment
Noncompete Agreement
New York
Noncompete agreement and industry restrictions?
I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.
Danielle G.
In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.
Employment
Noncompete Agreement
Colorado
Can I get out of my noncompete agreement?
I am looking at my options.
Donya G.
You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.
Employment
Noncompete Agreement
Washington
Noncompete agreement termination options?
I recently left my job after signing a Noncompete Agreement. I am looking for a new job, but I am concerned about the restrictions in the Noncompete Agreement and how it might affect my ability to find a new job. I am looking for advice on my options for terminating or modifying the Noncompete Agreement so that I can find a new job without having to worry about any potential legal repercussions.
Merry K.
I am a WA State employment attorney. If you didn’t receive anything in return for signing the non-compete, it may be relatively easy to get out of it. If, however, you signed in return for something, such as a severance package, it will be challenging to get out of the agreement. However, many non-compete agreements are written overly broadly and may not be enforceable under the laws of WA and other states. You may want to consult with a WA State employment attorney for a review of the documents and law(s) of the state(s) where you may want to work or set up a business. (A WA State attorney can only provide legal advice in WA, but can help you find applicable law/case decisions for other states but without providing anything beyond information, much like a law librarian).
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Non-Compete Clause in Employment (1099) contract
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