Occupation limits
Arkansas Non-Compete Law (2026): Permissive; physicians exempt
Arkansas enforces a non-compete when the employer has a protectable business interest and the restraint is limited in time and scope, with two years treated as presumptively fine. The statute is unusually forgiving about geography, telling courts that the absence of a defined territory does not by itself make a covenant overbroad if the time and scope limits do the work. Two groups sit outside the regime: physicians and osteopaths, protected by a 2025 amendment, and holders of professional licenses issued under Title 17, Subtitle 3.
The rule
How Arkansas treats non-compete agreements
Because Arkansas directs courts to reform rather than strike, an employee who wins on overbreadth usually ends up bound by a narrower covenant instead of walking free. The 2025 physician amendment was framed as clarifying existing law, which leaves genuine uncertainty about whether it reaches agreements signed before mid-2025.
If you are an employer
The two-year presumption and the tolerance for undefined territory make Arkansas a comparatively safe drafting environment, but confirm the worker is not a licensed professional and is not practicing medicine before you rely on the covenant.
If you are a worker
If you are a physician or osteopath, a 2025 amendment voids any covenant blocking you from practicing in your scope; other licensed professionals should check whether their license issues under Title 17, Subtitle 3.
| Classification | Codified protectable-interest test with physician and licensed-professional carve-outs |
|---|---|
| Pay threshold | No pay threshold |
| Maximum term | No absolute cap. A post-termination restraint of two years is presumptively reasonable in length unless the facts show it exceeds what the employer's protectable interest requires. |
| Notice or consideration | None specified by statute. The covenant must be ancillary to the employment relationship and backed by a protectable business interest. |
| Primary statute | Ark. Code § 4-75-101 (Act 921 of 2015, as amended by Act 232 of 2025) |
Detail
What has changed, and what is still moving
Legislation 2024–2026
Act 232 of 2025 (SB 139) added subsection (k), rendering void any covenant not to compete that restricts a physician licensed under the Arkansas Medical Practice Act, or an osteopath, from practicing within their scope of practice. It took effect about 90 days after the 2025 session adjourned.
Bills to watch
No significant restrictive bills pending
Leading cases
Act 921 of 2015 displaced the older common-law framework for agreements signed on or after its effective date, and reported decisions applying the current text remain sparse. Pre-2015 authority survives mainly as background on what counts as a protectable interest.
If you have one in hand
What can make a non-compete unenforceable in Arkansas
- Your occupation is carved out. Codified protectable-interest test with physician and licensed-professional carve-outs
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Arkansas.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Arkansas non-compete questions
Are non-compete agreements enforceable in Arkansas?
Arkansas enforces a non-compete when the employer has a protectable business interest and the restraint is limited in time and scope, with two years treated as presumptively fine. The statute is unusually forgiving about geography, telling courts that the absence of a defined territory does not by itself make a covenant overbroad if the time and scope limits do the work. Two groups sit outside the regime: physicians and osteopaths, protected by a 2025 amendment, and holders of professional licenses issued under Title 17, Subtitle 3.
How long can a non-compete last in Arkansas?
No absolute cap. A post-termination restraint of two years is presumptively reasonable in length unless the facts show it exceeds what the employer's protectable interest requires.
Is there a minimum salary for non-competes in Arkansas?
No. Arkansas sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Arkansas require?
None specified by statute. The covenant must be ancillary to the employment relationship and backed by a protectable business interest.
Sources
How this entry was checked
- Primary source. Ark. Code § 4-75-101 (Act 921 of 2015, as amended by Act 232 of 2025) — the statutory text itself.
- Secondary sources consulted. Ark. Code § 4-75-101 (Justia), Act 232 of 2025 / SB 139, Littler client alert on the Arkansas physician ban, Foley & Lardner 2026 overview.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.