An Arkansas non-compete agreement is a written contract. In it, an employee promises not to compete with the employer for a set time after the job ends. Arkansas bans physician non-compete agreements that restrict the right to practice within the physician's scope of practice.[1] Learn the rules here, then create a free non-compete agreement online.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Arkansas law. If you notice an error or outdated information, please contact us.
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A non-compete is enforceable when it is ancillary to an employment relationship. That means it is tied to the job. It is also enforceable when it is part of an otherwise enforceable employment agreement. It is enforceable only to the extent that:
An employee's continued employment is sufficient consideration for a covenant not to compete.[1]
A post-termination restriction of two years is presumptively reasonable as to length of time. A court can still find two years unreasonable. That applies when the facts and circumstances of the case clearly show it is too long compared to the employer's protectable business interest.[1]
The contract does not need a specific geographic area. A missing geographic restriction does not make it overly broad.[1]
Arkansas bans physician non-compete agreements that restrict the right to practice within the physician's scope of practice. Such a covenant is void. It has no legal force and cannot be enforced.[1]
Except as the statute otherwise provides, its non-compete rules do not apply to a person holding a professional license under Arkansas Code Title 17, Subtitle 3. The statute also does not impair, limit or change a party's protections and rights under the Arkansas Trade Secrets Act.[1]
Avoid restrictions that impose a greater restraint than the employer's protectable business interest needs. If the restrictions are unreasonable, the court must reform the agreement. To reform means to change the terms to make them reasonable.[1]
The law treats the immediate harm from breaking a non-compete as irreparable. This matters when a court decides on a preliminary injunction.[1]
The statute does not apply to a covenant not to compete that is ancillary to other contractual relationships. That includes any agreement for the sale and purchase of a business and any franchise agreement. It also includes any agreement that is not ancillary to an employment relationship or employment contract.[1]
Need a different form? See the non-compete template for employees, the non-compete template for independent contractors, or a confidentiality agreement.
In Arkansas, a covenant not to compete that restricts the right of a physician to practice within the physician's scope of practice is void. A void covenant cannot be enforced. The physician is not bound by it.[1]
It is enforceable if it is ancillary to an employment relationship or part of an otherwise enforceable employment agreement. The employer must also have a protectable business interest.[1]
They can. A court enforces a non-compete that meets the statute's conditions. It must reform one that goes further than necessary.[1]
Only on conditions. The employer needs a protectable business interest. The limits cannot exceed what is necessary to defend it.[1]
General information, not legal or tax advice.
