Non Compete Agreements in Arkansas: Can They Be Enforced?
By John Norwood · October 8, 2009 · 2009 Ark. L. Notes
In categories: Business Law
It is not uncommon for employers to insist that certain of their employees sign “non compete” agreements1 as a condition of their being hired or as a condition of their continued employment. Such agreements typically prohibit an employee (after he or she is no longer employed by the original employer) from competing with the original employer for a speciﬁed period of time and within a speciﬁed area. Legal challenges to such agreements are common, and it is generally believed that non compete agreements are rarely enforced in Arkansas courts. In fact, Arkansas decisions almost always state that non compete agreements are not favored by the law, but may be enforceable if three requirements are met: The geographical restriction must not be overly broad; A reasonable time limit must be imposed; and The employer must have a legitimate interest to protect. In addition, the covenant must stand or fall as is, and cannot be modified by the court to an extent that may be considered reasonable.