Arkansas Non-Compete Laws (2026): Are Non-Competes Enforceable?

Non-competes are enforceable in Arkansas when they are reasonable, and a statute sets the test. Ark. Code § 4-75-101, enacted by Act 921 of 2015, makes an employee's covenant not to compete enforceable to the extent the employer has a protectable business interest and the covenant is limited in time and scope to no more than is necessary to protect that interest. A two-year restriction is presumed reasonable in length.

There is one outright ban. Since Act 232 of 2025, a covenant not to compete that restricts a physician's right to practice within the physician's scope of practice is void. Arkansas sets no salary threshold, and a court that finds a covenant too broad must rewrite it rather than throw it out. For how other states compare, see our non-compete laws by state guide.

Information last verified on 2026-10-08. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Arkansas's covenant-not-to-compete statute, Ark. Code § 4-75-101, as enacted by Act 921 of 2015 and amended by Act 232 of 2025, with a short note on the federal FTC rule. It does not cover trade-secret claims (see Arkansas trade secret laws), severance agreements (see Arkansas severance pay laws), or non-competes signed in the sale of a business.

Are non-competes enforceable in Arkansas?

Yes, within limits the statute sets. Subsection (a) of the section enacted by Act 921 of 2015 provides:

"A covenant not to compete agreement is enforceable if the agreement is ancillary to 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 covenant not to compete 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." Act 921 of 2015, codified at Ark. Code § 4-75-101(a)

So the questions are what the employer is protecting and whether the restriction goes further than that interest requires. Both conditions must be met.

A note on sources: we read this text from the two official session laws on the Arkansas Legislature's website, Act 921 of 2015 and Act 232 of 2025. The Arkansas Code itself is published commercially, and we did not read the compiled current section from an official compilation or check for amendments between 2015 and 2025 other than Act 232.

What counts as a protectable business interest

Act 921 lists the interests an employer may protect. They include:

• trade secrets and intellectual property;
• customer lists and goodwill with customers;
• knowledge of business practices, methods, profit margins and costs;
• other confidential business information;
• the training and education of the employer's employees;
• other valuable employer data.

The list matters because the covenant can be no broader than what is needed to defend the interest the employer actually has.

How long and how far a non-compete can reach

Arkansas sets no maximum length, but it gives two years special weight. Under subsection (d):

"A post-termination restriction of two (2) years is presumptively reasonable as to length of time under subdivision (a)(2) of this section unless the facts and circumstances of a particular case clearly demonstrate that two (2) years is unreasonable compared to the employer's protectable business interest." Act 921 of 2015, codified at Ark. Code § 4-75-101(d)

A presumption is a starting point. A two-year covenant can still be shown unreasonable on clear facts, and a longer one does not get the presumption at all.

Geography works differently than in many states. Under subsection (c), the lack of a specific geographic restriction does not by itself make a covenant overbroad if it is otherwise limited in time and scope. Reasonableness takes into account the geographic scope of the employer's business and whether a geographic limit is feasible.

Signing a non-compete after you start the job

Arkansas does not require a raise, bonus or promotion to support a covenant signed mid-employment. Subsection (g) states: "An employee's continued employment is sufficient consideration for a covenant not to compete agreement." The statute text we read contains no advance-notice period, no requirement to advise the employee to consult a lawyer, and no garden-leave pay rule.

Doctors: the 2025 physician ban

Act 232 of 2025 (Senate Bill 139) added subsection (k):

"A covenant not to compete agreement that restricts the right of a physician to practice within the physician's scope of practice is void." Act 232 of 2025, codified at Ark. Code § 4-75-101(k)

"Physician" in this subsection means a person authorized or licensed to practice under the Arkansas Medical Practices Act (Ark. Code §§ 17-95-201 et seq., 17-95-301 et seq. and 17-95-401 et seq.) and a person authorized to practice osteopathy under § 17-91-101 et seq. In practice, that covers MDs and DOs. The rule says such a covenant is void; it does not direct courts to narrow it.

The act was approved on March 4, 2025. Its text contains no emergency clause and no specified effective date, so it took effect August 5, 2025, the date Arkansas Attorney General Opinion No. 2025-032 (May 12, 2025) gives for such acts of the 2025 regular session. The act also does not say whether it reaches covenants signed before it took effect, and this page does not answer that question.

Other licensed professionals

As amended by Act 232, subsection (j)(2) says that, except as subsection (k) provides, the section does not apply to a person holding a professional license under Arkansas Code Title 17, Subtitle 3. Physicians are brought back in only for the subsection (k) voiding rule. Subtitle 3 of Title 17 is the Arkansas Code's "Medical Professions" subtitle, which includes, for example, the nursing chapter (Chapter 87), so nurses and other medical professionals licensed under it fall outside the statute's test.

For other licensees in that subtitle, the statute's enforceability test does not apply. Our research did not establish which rule governs their covenants instead, so this page does not state one. A professional in that position may want a lawyer to review the specific agreement.

What a court does with an overbroad non-compete

Arkansas courts do not simply strike an overbroad employee covenant. Under subsection (f)(1), if a court finds the restrictions unreasonable and imposing a greater restraint than necessary, "the court shall reform the covenant not to compete agreement to the extent necessary" to make the limits reasonable, and under (f)(2) the court then enforces the covenant as reformed.

Subsection (e) sets the employer's remedies. A court may award damages, injunctive relief, or both, and immediate harm from a breach "shall be considered irreparable" when the employer asks for a preliminary injunction. The statute contains no matching penalty, fee-shifting or damages remedy for an employee.

Fired, laid off or quit

The statute text makes no distinction between an employee who quits and one who is fired or laid off. Arkansas case law on that point was not part of our research, so this page states no rule beyond the text.

Non-solicitation agreements and NDAs

Subsection (i) leaves several common clauses outside the statute. Agreements not to solicit, recruit or hire employees, confidentiality agreements, nondisclosure agreements, and terms of employment that do not concern competition remain governed by existing common-law standards.

Subsection (h) does the same for covenants tied to other contractual relationships, including the sale and purchase of a business, franchise agreements, and any other agreement not ancillary to an employment relationship. This page covers only employee covenants.

Non-competes and trade secrets

A non-compete is a contract term; trade-secret protection exists whether or not an employee signed one. Subsection (j)(1) says the section does not impair rights under the Arkansas Trade Secrets Act, Ark. Code § 4-75-601 et seq. See Arkansas trade secret laws.

Choice of law, venue and enforcement

Neither Act 921 nor Act 232 contains a choice-of-law or forum provision for employee covenants. The statute names no state agency to enforce it; non-compete disputes are private lawsuits decided by the courts.

Recent and pending changes

We found no other 2025 Arkansas non-compete bill. That is a weak negative: the legislature's keyword search could not be run, and the result rests on general searches that surfaced only SB 139. We did not check the 2026 fiscal session.

The FTC rule and Arkansas non-competes

The FTC's nationwide non-compete rule never took effect. A federal court in Texas set it aside on August 20, 2024 (Ryan, LLC v. FTC, No. 3:24-CV-00986-E, N.D. Tex.); the FTC voted on September 5, 2025 to dismiss its appeals and removed the rule from the Code of Federal Regulations on February 12, 2026. The FTC still acts against specific employers case by case, including a final order approved June 22, 2026 requiring a pest-control company to stop enforcing non-competes. See FTC non-compete ban struck down and our non-compete laws by state guide.

Questions this page does not answer yet

Our research did not verify these points, so this page states no rule on them:

• the current compiled text of Ark. Code § 4-75-101, including any amendment between 2016 and 2024;
• whether Act 232's physician ban reaches covenants signed before it took effect;
• the rule for covenants of non-physician professionals licensed under Title 17, Subtitle 3;
• how Arkansas courts treat a covenant after the employer fires the employee.

If you have been asked to sign

Under § 4-75-101, the questions are which protectable interest the covenant serves, whether its length and scope go further than that interest needs, and whether the physician rule or the Title 17 exclusion applies to you. Because a court must reform rather than void an overbroad covenant, an overly broad clause may still be enforced in narrower form. A lawyer licensed in Arkansas can review a specific agreement against those points.

Related

• Non-compete laws by state
• Arkansas trade secret laws
• Arkansas severance pay laws
• Arkansas at-will employment laws
• FTC non-compete ban struck down

Disclaimer: This article provides general legal information about Arkansas non-compete law under Ark. Code § 4-75-101 (Act 921 of 2015, as amended by Act 232 of 2025), not legal advice. The information was last verified on 2026-10-08. No state agency enforces this statute; for advice about a specific agreement, contact a legal aid office or a lawyer licensed in Arkansas.

Last updated: 2026-10-08.

Frequently Asked Questions

Are non-competes enforceable in Arkansas?

They can be. Under Ark. Code § 4-75-101(a), an employee covenant is enforceable to the extent the employer has a protectable business interest and the covenant is limited in time and scope to no more than is necessary to protect it.

How long can a non-compete last in Arkansas?

The statute sets no maximum, but under Ark. Code § 4-75-101(d) a two-year post-termination restriction is presumptively reasonable unless the facts clearly show it is unreasonable compared with the employer's protectable interest.

Does an Arkansas non-compete need a geographic limit?

Not necessarily. Under Ark. Code § 4-75-101(c), the lack of a specific geographic restriction does not by itself make a covenant overbroad if it is otherwise limited in time and scope.

Can my employer make me sign a non-compete after I start working in Arkansas?

The statute allows it. Ark. Code § 4-75-101(g) says an employee's continued employment is sufficient consideration for a covenant not to compete.

Are non-competes for doctors banned in Arkansas?

For physicians, yes. Act 232 of 2025 added Ark. Code § 4-75-101(k), which makes void a covenant that restricts a physician's right to practice within the physician's scope of practice; it covers MDs and DOs.

What happens if an Arkansas non-compete is too broad?

The court must reform it. Under Ark. Code § 4-75-101(f), a court that finds the restrictions greater than necessary shall reform the covenant to make them reasonable and then enforce it as reformed.

Is there a salary threshold for non-competes in Arkansas?

No. Neither Act 921 of 2015 nor Act 232 of 2025 sets an income or wage threshold for employee non-competes.

Does the Arkansas non-compete statute cover non-solicitation agreements?

No. Under Ark. Code § 4-75-101(i), agreements not to solicit, recruit or hire employees, confidentiality agreements and NDAs stay under existing common-law standards.

Does the FTC non-compete ban apply in Arkansas?

No. A federal court set the FTC rule aside on August 20, 2024, and the FTC removed it from the Code of Federal Regulations on February 12, 2026.