Arkansas Enacts Noncompete Law: Employment Law Manual Updated, Legal Timetable Entry Added

Authors: Melissa A. Silver and Marta Moakley, XpertHR Legal Editors

Under a new law that takes effect August 6, 2015, a noncompete agreement in Arkansas will be enforceable if it is part of an employment relationship or part of an otherwise enforceable employment agreement or contract to the extent that:

  1. The employer has a protectable business interest; and
  2. The noncompete agreement is limited with respect to time and scope in a manner that is not greater than necessary to defend the protectable business interest of the employer.

In light of the development, the Arkansas Terms of Employment, Employee Communications and Employee Discipline sections of the Employment Law Manual have been updated. In addition, a Legal Timetable entry has been added.