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
Judy R.
I am passionate about legal research and writing. I have excellent research and writing skills. My entire legal career has centered around fact-finding, contract and statute interpretation, legal analysis, as well as legal research and writing.
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Employment
Noncompete Agreement
Delaware
Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?
If someone accuses you of fraud, because they believe you never had intended to honor your employment contract such as non-compete/non-solicit. Could this ever become a criminal case, resulting in criminal/jail time?
Matthew S.
No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.
Employee Rights
Noncompete Agreement
New York
Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?
I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?
Damien B.
Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.
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
New York
Noncompete agreement breach consequences?
I recently left my job as an employee at a company that I had worked for for over a year. I was asked to sign a noncompete agreement when I began the job, which I did. I have since started a new job in the same industry as my former employer, which is in violation of the noncompete agreement. I am now wondering what the consequences of this breach of contract may be and am seeking legal advice.
Gregory F.
I would be happy to schedule a paid telephone consultation with you to review the non-compete agreement, advise you on its scope and enforceability, and answer your questions. Please contact me via email at greg@fidlonlegal.com to discuss.
Contracts
Noncompete Agreement
Florida
Noncompete agreement choice of law?
I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.
Venus C.
Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.
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