# Non-Competes in Arkansas[^about] Arkansas non-compete law under Ark. Code Ann. § 4-75-101, enacted by Act 921 of 2015, includes mandatory reformation, continued-employment consideration, a two-year presumption, a physician ban, and judicial tolling risk. ## Are employee non-compete agreements enforceable in Arkansas? {#employee-noncompetes} **Short answer.** Yes, if the covenant is ancillary to employment, protects a statutory business interest, and is no broader in time and scope than necessary to defend that interest [^q1-aca-enforceable]. For agreements governed by the current statute, Arkansas is a permissible, enforce-if-reasonable state rather than a ban state. Ark. Code Ann. § 4-75-101 lists protectable interests, supplies a two-year duration presumption, allows no defined geographic restriction in some cases, and requires reformation of overbroad covenants [^q1-aca-enforceable][^q1-aca-protectable][^q1-aca-reformation]. For a clause-by-clause pass over a specific agreement against these rules, the [Arkansas non-compete review checklist](/checklists/non-compete/us/arkansas) walks the full covenant suite item by item with each requirement's force level. The effective-date line matters. *Box* treated Act 921 as effective July 22, 2015, and said the statute only arguably applied to the agreement executed after that date, while older agreements remained on the pre-Act common-law track [^q1-box-effective-date]. > [!NOTE] > **Practice note.** > > Do not cite pre-2015 Arkansas cases as if they still supply the whole remedial rule. They remain useful for the old common-law framework and reasonableness concepts, but current covered employment covenants start with § 4-75-101 [^q1-box-effective-date][^q1-aca-reformation]. ## What makes an Arkansas non-compete reasonable or enforceable? {#reasonableness-test} **Short answer.** The covenant must be tied to a protectable business interest and limited in time and scope no more than necessary to defend that interest [^q2-aca-enforceable]. The statute supplies the protectable-interest categories. They include trade secrets, intellectual property, customer lists, customer goodwill, business practices, methods, margins, costs, confidential business information, employee training and education, and other valuable employer data reasonably safeguarded from competitors [^q2-aca-protectable]. Reasonableness is still contextual. The statute tells courts to consider the nature of the employer's protectable interest, the geographic scope of the business, whether a geographic limit is feasible, whether the restriction is limited to a specific customer or business group, and the nature of the employer's business [^q2-aca-factors]. > [!CAUTION] > **Drafting note.** > > Ordinary competition is not enough. Even before Act 921, Arkansas cases required a real protectable interest rather than a covenant designed only to eliminate competition, and the current statute keeps that interest requirement at the center [^q2-mercy-no-ordinary-competition][^q2-aca-enforceable]. ## Does an Arkansas non-compete need a geographic limit? {#geographic-limit} **Short answer.** Not always. The current statute says the lack of a specific or defined geographic restriction does not make a covenant overbroad if the restraint is otherwise reasonable as to time and scope [^q3-aca-no-geography]. "The lack of a specific or defined geographic descriptive restriction in a covenant not to compete agreement does not make the covenant not to compete agreement overly broad under subdivision (a)(2) of this section if 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."[^q3-aca-no-geography] That is a major statutory shift from the old common-law risk. In *Bendinger*, the Arkansas Supreme Court rejected a covenant with no geographic limit because the facts did not justify it; in *NanoMech*, the Eighth Circuit applied pre-Act Arkansas law to invalidate a no-geography, any-capacity covenant [^q3-bendinger-geography][^q3-nanomech-geography]. The current drafting point is practical rather than formalistic. If there is no geography, the covenant needs another limiting mechanism, such as customer scope, activity scope, or business-scope limits tied to the employer's protectable interest [^q3-aca-no-geography][^q3-aca-factors]. ## How long can an Arkansas non-compete last? {#duration} **Short answer.** Two years is presumptively reasonable under the statute, unless the particular facts clearly show that two years is unreasonable compared with the employer's protectable interest [^q4-aca-two-years]. "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."[^q4-aca-two-years] The presumption is not a safe harbor for every two-year clause. The statute ties duration back to the employer's protectable business interest, and *Bud Anderson* noted the older Arkansas damages treatise summary that one- and two-year limits had been upheld while three- and five-year limits had been unreasonable or invalid [^q4-aca-two-years][^q4-bud-duration]. > [!CAUTION] > **Drafting note.** > > Avoid treating two years as automatic. The presumption can be overcome by case-specific facts, especially if the protected interest is narrow or the work restriction is broad [^q4-aca-two-years]. ## Will an Arkansas court reform an overbroad non-compete? {#court-reformation} **Short answer.** Yes, for a covered employment non-compete under § 4-75-101. If the restrictions are unreasonable, the court must reform the covenant as needed and enforce it under the reformed terms [^q5-aca-reformation]. "The court shall enforce the covenant not to compete agreement under the reformed terms and conditions."[^q5-aca-reformation-enforce] That mandatory reformation rule is the watershed change from pre-Act Arkansas law. Under the old regime, the contract had to be valid as written, and the court would not narrow it to a reasonable version [^q5-bendinger-no-rewrite][^q5-nanomech-no-narrow]. The temporal framing is important. *Bendinger* and *NanoMech* remain useful for the old all-or-nothing rule, and *Box* confirms Act 921's effective-date line; they should not be cited as current authority against mandatory statutory reformation for a covered post-Act employment covenant [^q5-box-effective-date][^q5-aca-reformation]. > [!NOTE] > **Practice note.** > > Reformation does not remove the need to draft narrowly. The statute tells courts to reform only to the extent necessary to make the limitations reasonable and no greater than needed to protect the business interest [^q5-aca-reformation]. ## Is continued employment enough consideration for an Arkansas non-compete? {#consideration} **Short answer.** Yes. The statute says continued employment is sufficient consideration for a covenant not to compete [^q6-aca-consideration]. "An employee's continued employment is sufficient consideration for a covenant not to compete agreement."[^q6-aca-consideration] That means Arkansas does not require a separate bonus, promotion, equity grant, or new job offer for consideration when the statutory rule applies. The covenant still must satisfy the other statutory requirements, including protectable interest and reasonable time and scope [^q6-aca-consideration][^q6-aca-enforceable]. ## Are physician and professional non-competes enforceable in Arkansas? {#physicians-professionals} **Short answer.** Physician practice restrictions are void under the current statute, and § 4-75-101 otherwise does not apply to covered Title 17 professional licensees except for that physician rule [^q7-aca-physician-void][^q7-aca-title-17]. "A covenant not to compete agreement that restricts the right of a physician to practice within the physician's scope of practice is void."[^q7-aca-physician-void] The physician ban was added by the 2025 amendment. The statute defines physician by reference to the Arkansas Medical Practices Act and osteopathy licensing provisions [^q7-aca-physician-definition]. Older physician cases should be framed as pre-2025 public-policy and common-law context, not as the current statutory text. In *Mercy v. Bicak*, the Court of Appeals emphasized public access to physicians and affirmed summary judgment against enforcement of the physician non-compete [^q7-mercy-public-policy][^q7-mercy-affirm]. > [!NOTE] > **Practice note.** > > Do not generalize the physician void rule to every licensed professional. The statute voids covered physician practice restrictions, while separately saying § 4-75-101 does not apply to people holding a professional license under Arkansas Code Title 17, Subtitle 3, except as provided in subsection k [^q7-aca-physician-void][^q7-aca-title-17]. ## Does an Arkansas non-compete period toll or extend during breach or litigation? {#tolling-extension} **Short answer.** Sometimes by equitable injunction, but drafted contractual tolling clauses remain an open question. *Bud Anderson* treated a prospective injunction beyond the nominal one-year period as legally possible, while § 4-75-101 does not expressly validate tolling-on-breach clauses [^q8-bud-prospective][^q8-aca-remedies]. The practical lesson is that Arkansas courts may keep a non-compete injunction dispute alive even after the stated period expires. *Bud Anderson* rejected a mootness dismissal where the employer sought an injunction running one year from the order and the record did not show that relief was impossible [^q8-bud-prospective]. That is different from saying every contract clause that automatically extends the restricted period during breach is enforceable. The Arkansas statute speaks to damages, injunctive relief, irreparable harm, reformation, and enforcement under reformed terms, but it does not contain an express contractual tolling rule [^q8-aca-remedies][^q8-aca-reformation]. > [!NOTE] > **Practice note.** > > Draft tolling language as a risk allocation, not as settled Arkansas law. *Bud Anderson* supports judicially fashioned prospective relief in the injunction posture; it does not squarely decide whether a private extension-on-breach clause is independently enforceable under § 4-75-101 [^q8-bud-prospective][^q8-aca-remedies]. ## What remedies are available for breach of an Arkansas non-compete? {#injunction-remedies} **Short answer.** A court may award damages, appropriate injunctive relief, or both, and immediate harm from breach is statutorily treated as irreparable for preliminary-injunction purposes [^q9-aca-remedies][^q9-aca-irreparable]. "The immediate harm associated with the breach of a covenant not to compete agreement shall be considered irreparable to establish the appropriateness of a preliminary injunction."[^q9-aca-irreparable] *Porter's* applied that current statutory rule. The Court of Appeals reversed because the circuit court used only the common-law definition of irreparable harm and failed to apply § 4-75-101 in a case involving non-compete agreements executed after 2015 [^q9-porters-after-2015][^q9-porters-statutory-harm]. The statutory irreparable-harm rule does not eliminate every injunction defense. Subsection e says the remedies language does not limit defenses to preliminary injunctive relief or the employer's right to monetary damages [^q9-aca-savings]. ## How does Arkansas treat non-solicitation, confidentiality, and trade-secret agreements? {#related-covenants} **Short answer.** Section 4-75-101 does not apply to employee agreements that do not concern competition or competitive work, including employee non-solicits, confidentiality agreements, and nondisclosure agreements; existing common-law standards remain in effect for those agreements [^q10-aca-related-covenants]. The statute also preserves Arkansas Trade Secrets Act protections and rights. That means a trade-secret claim may be analyzed separately from a non-compete claim, and the statute should not be read to impair, limit, or change ATSA protections [^q10-aca-atsa]. Pre-Act cases show the difference in practice. *Bendinger* rejected the non-compete as overbroad but separately affirmed denial of a permanent trade-secret injunction because the evidence did not prove actual, threatened, or inevitable misappropriation [^q10-bendinger-trade-secrets]. > [!CAUTION] > **Drafting note.** > > Do not label every customer, employee, confidentiality, or NDA restriction as a non-compete. Arkansas separates covered competition restraints from other agreements, and the governing standards can differ [^q10-aca-related-covenants]. [^about]: By Steven Obiajulu, J.D. Published by [openagreements.org](https://openagreements.org). Last reviewed 2026-06-02. License: CC BY 4.0. Steven Obiajulu, J.D. is admitted in New York, not Arkansas. This article synthesizes Arkansas primary law and is not legal advice from a Arkansas-admitted attorney. This article is for informational purposes only and does not create an attorney-client relationship. [^q1-aca-enforceable]: **Ark. Code Ann. § 4-75-101** — "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." *Ark. Code Ann. § 4-75-101(a).* [^q1-aca-protectable]: **Ark. Code Ann. § 4-75-101** — "For the purposes of subsection (a) of this section, the protectable business interest of the employer includes the employer's: (1) Trade secrets; (2) Intellectual property; (3) Customer lists; (4) Goodwill with customers; (5) Knowledge of his or her business practices; (6) Methods; (7) Profit margins; (8) Costs; (9) Other confidential business information that is confidential, proprietary, and increases in value from not being known by a competitor; (10) Training and education of the employer's employees; and (11) Other valuable employer data that the employer has provided to an employee that an employer would reasonably seek to protect or safeguard from a competitor in the interest of fairness." *Ark. Code Ann. § 4-75-101(b).* [^q1-aca-reformation]: **Ark. Code Ann. § 4-75-101** — "The court shall enforce the covenant not to compete agreement under the reformed terms and conditions." *Ark. Code Ann. § 4-75-101(f).* [^q1-box-effective-date]: **Box v. J.B. Hunt Transport, Inc.** — "Arkansas Code Annotated section 4-75-101 (Supp. 2015), which became effective on July 22, 2015, pursuant to the enactment of Act 921 of 2015." *Box v. J.B. Hunt Transp., Inc., 2017 Ark. App. 605, 533 S.W.3d 603.* [^q2-aca-enforceable]: **Ark. Code Ann. § 4-75-101** — "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." *Ark. Code Ann. § 4-75-101(a).* [^q2-aca-protectable]: **Ark. Code Ann. § 4-75-101** — "For the purposes of subsection (a) of this section, the protectable business interest of the employer includes the employer's: (1) Trade secrets; (2) Intellectual property; (3) Customer lists; (4) Goodwill with customers; (5) Knowledge of his or her business practices; (6) Methods; (7) Profit margins; (8) Costs; (9) Other confidential business information that is confidential, proprietary, and increases in value from not being known by a competitor; (10) Training and education of the employer's employees; and (11) Other valuable employer data that the employer has provided to an employee that an employer would reasonably seek to protect or safeguard from a competitor in the interest of fairness." *Ark. Code Ann. § 4-75-101(b).* [^q2-aca-factors]: **Ark. Code Ann. § 4-75-101** — "The reasonableness of a covenant not to compete agreement shall be determined after considering: (A) The nature of the employer's protectable business interest; (B) The geographic scope of the employer's business and whether or not a geographic limitation is feasible under the circumstances; (C) Whether or not the restriction placed on the employee is limited to a specific group of customers or other individuals or entities associated with the employer's business; and (D) The nature of the employer's business." *Ark. Code Ann. § 4-75-101(c).* [^q2-mercy-no-ordinary-competition]: **Mercy Health Sys. of Nw. Ark., Inc. v. Bicak** — "Unless the covenantee has a legitimate interest to be protected by the agreement, the law will not enforce such a contract, as this would merely prohibit ordinary competition." *Mercy Health Sys. of Nw. Ark., Inc. v. Bicak, 2011 Ark. App. 341, 383 S.W.3d 869.* [^q3-aca-no-geography]: **Ark. Code Ann. § 4-75-101** — "The lack of a specific or defined geographic descriptive restriction in a covenant not to compete agreement does not make the covenant not to compete agreement overly broad under subdivision (a)(2) of this section if 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." *Ark. Code Ann. § 4-75-101(c).* [^q3-bendinger-geography]: **Bendinger v. Marshalltown Trowel Co.** — "We hold that the failure of the covenant to contain a geographic restriction in this case renders it overbroad." *Bendinger v. Marshalltown Trowel Co., 338 Ark. 410, 994 S.W.2d 468 (1999).* [^q3-nanomech-geography]: **NanoMech, Inc. v. Suresh** — "Under Arkansas law, a noncompete agreement must be valid as written; a court may not narrow it." *NanoMech, Inc. v. Suresh, 777 F.3d 1020 (8th Cir. 2015).* [^q3-aca-factors]: **Ark. Code Ann. § 4-75-101** — "The reasonableness of a covenant not to compete agreement shall be determined after considering: (A) The nature of the employer's protectable business interest; (B) The geographic scope of the employer's business and whether or not a geographic limitation is feasible under the circumstances; (C) Whether or not the restriction placed on the employee is limited to a specific group of customers or other individuals or entities associated with the employer's business; and (D) The nature of the employer's business." *Ark. Code Ann. § 4-75-101(c).* [^q4-aca-two-years]: **Ark. Code Ann. § 4-75-101** — "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." *Ark. Code Ann. § 4-75-101(d).* [^q4-bud-duration]: **Bud Anderson Heating & Cooling, Inc. v. Neil** — "[W]hile the courts have upheld time limits of one year and two years, restrictions of three years and five years were unreasonable and invalid." *Bud Anderson Heating & Cooling, Inc. v. Neil, 2018 Ark. App. 183, 545 S.W.3d 819.* [^q5-aca-reformation]: **Ark. Code Ann. § 4-75-101** — "If restrictions in a covenant not to compete agreement are found to be unreasonable and impose a greater restraint than is necessary to protect the protectable business interest of the employer under subdivision (a)(1) of this section, the court shall reform the covenant not to compete agreement to the extent necessary to: (A) Cause the limitations contained in the covenant not to compete agreement to be reasonable; and (B) Impose a restraint that is not greater than necessary to protect the protectable business interest." *Ark. Code Ann. § 4-75-101(f).* [^q5-aca-reformation-enforce]: **Ark. Code Ann. § 4-75-101** — "The court shall enforce the covenant not to compete agreement under the reformed terms and conditions." *Ark. Code Ann. § 4-75-101(f).* [^q5-bendinger-no-rewrite]: **Bendinger v. Marshalltown Trowel Co.** — "The court has held that the contract must be valid as written, and the court will not apportion or enforce a contract to the extent that it might be considered reasonable." *Bendinger v. Marshalltown Trowel Co., 338 Ark. 410, 994 S.W.2d 468 (1999).* [^q5-nanomech-no-narrow]: **NanoMech, Inc. v. Suresh** — "Under Arkansas law, a noncompete agreement must be valid as written; a court may not narrow it." *NanoMech, Inc. v. Suresh, 777 F.3d 1020 (8th Cir. 2015).* [^q5-box-effective-date]: **Box v. J.B. Hunt Transport, Inc.** — "However, in the present case the statutory law arguably applies only to the parties’ third restricted stock agreement executed in October 2015 after Act 921 became effective." *Box v. J.B. Hunt Transp., Inc., 2017 Ark. App. 605, 533 S.W.3d 603.* [^q6-aca-consideration]: **Ark. Code Ann. § 4-75-101** — "An employee's continued employment is sufficient consideration for a covenant not to compete agreement." *Ark. Code Ann. § 4-75-101(g).* [^q6-aca-enforceable]: **Ark. Code Ann. § 4-75-101** — "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." *Ark. Code Ann. § 4-75-101(a).* [^q7-aca-physician-void]: **Ark. Code Ann. § 4-75-101** — "A covenant not to compete agreement that restricts the right of a physician to practice within the physician's scope of practice is void." *Ark. Code Ann. § 4-75-101(k).* [^q7-aca-title-17]: **Ark. Code Ann. § 4-75-101** — "Except as provided under subsection (k) of this section, this section shall not: (1) Be read to impair, limit, or change a party's protections and rights under the Arkansas Trade Secrets Act, § 4-75-601 et seq.; or (2) Apply to a person holding a professional license under Arkansas Code Title 17, Subtitle 3." *Ark. Code Ann. § 4-75-101(j).* [^q7-aca-physician-definition]: **Ark. Code Ann. § 4-75-101** — "As used in subdivision (k)(1) of this section, ‘physician’ means a person authorized or licensed to practice medicine under the Arkansas Medical Practices Act, § 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." *Ark. Code Ann. § 4-75-101(k).* [^q7-mercy-public-policy]: **Mercy Health Sys. of Nw. Ark., Inc. v. Bicak** — "Covenants not to compete are not looked upon with favor by the law; in fact, it is contrary to public policy to unduly restrict the [spublic’s right of access to the physicians of their choice." *Mercy Health Sys. of Nw. Ark., Inc. v. Bicak, 2011 Ark. App. 341, 383 S.W.3d 869.* [^q7-mercy-affirm]: **Mercy Health Sys. of Nw. Ark., Inc. v. Bicak** — "The circuit court did not err in granting partial summary judgment to Dr. Bicak on the eovenant-not-to-compete claim because Mercy did not counter the evidence demonstrating that it had no interest sufficient to warrant its enforcement; that it was designed only to eliminate competition; and that it would unreasonably interfere with the public’s right of access to the physicians of their choice and Dr. Bicak’s ability to earn a living." *Mercy Health Sys. of Nw. Ark., Inc. v. Bicak, 2011 Ark. App. 341, 383 S.W.3d 869.* [^q8-bud-prospective]: **Bud Anderson Heating & Cooling, Inc. v. Neil** — "Therefore, it is not clear and obvious on the record before us that BAHC could not obtain the relief it seeks on appeal, a one-year prospective injunction." *Bud Anderson Heating & Cooling, Inc. v. Neil, 2018 Ark. App. 183, 545 S.W.3d 819.* [^q8-aca-remedies]: **Ark. Code Ann. § 4-75-101** — "In a private court action, a court may award the employer damages for a breach of a covenant not to compete agreement, appropriate injunctive relief, or both, if appropriate." *Ark. Code Ann. § 4-75-101(e).* [^q8-aca-reformation]: **Ark. Code Ann. § 4-75-101** — "The court shall enforce the covenant not to compete agreement under the reformed terms and conditions." *Ark. Code Ann. § 4-75-101(f).* [^q9-aca-remedies]: **Ark. Code Ann. § 4-75-101** — "In a private court action, a court may award the employer damages for a breach of a covenant not to compete agreement, appropriate injunctive relief, or both, if appropriate." *Ark. Code Ann. § 4-75-101(e).* [^q9-aca-irreparable]: **Ark. Code Ann. § 4-75-101** — "The immediate harm associated with the breach of a covenant not to compete agreement shall be considered irreparable to establish the appropriateness of a preliminary injunction." *Ark. Code Ann. § 4-75-101(e).* [^q9-porters-after-2015]: **Porter's Commercial Refrigeration, Inc. v. Brewer** — "The grounds for establishing the right to an injunction are straightforward, but the analysis becomes layered in the context of allegations regarding breaches of noncompete agreements executed after 2015." *Porter's Com. Refrigeration, Inc. v. Brewer, 2024 Ark. App. 232, 688 S.W.3d 145.* [^q9-porters-statutory-harm]: **Porter's Commercial Refrigeration, Inc. v. Brewer** — "This means that a party seeking a preliminary injunction concerning a noncompete agreement executed after 2015 can establish irreparable harm by establishing immediate harm associated with a breach of the noncompete." *Porter's Com. Refrigeration, Inc. v. Brewer, 2024 Ark. App. 232, 688 S.W.3d 145.* [^q9-aca-savings]: **Ark. Code Ann. § 4-75-101** — "This subsection does not limit: (A) Any other defense available to a party against a claim for preliminary injunctive relief; or (B) An employer's right to monetary damages for breach of a covenant not to compete agreement." *Ark. Code Ann. § 4-75-101(e).* [^q10-aca-related-covenants]: **Ark. Code Ann. § 4-75-101** — "This section shall not apply to other types of agreements between employers and employees that do not concern competition or competitive work, including: (A) Agreements not to solicit, recruit, or hire employees; (B) Confidentiality agreements; (C) Nondisclosure agreements; and (D) The terms and conditions of an employment or employment agreement." *Ark. Code Ann. § 4-75-101(i).* [^q10-aca-atsa]: **Ark. Code Ann. § 4-75-101** — "Except as provided under subsection (k) of this section, this section shall not: (1) Be read to impair, limit, or change a party's protections and rights under the Arkansas Trade Secrets Act, § 4-75-601 et seq.; or (2) Apply to a person holding a professional license under Arkansas Code Title 17, Subtitle 3." *Ark. Code Ann. § 4-75-101(j).* [^q10-bendinger-trade-secrets]: **Bendinger v. Marshalltown Trowel Co.** — "We next turn to Marshalltown’s cross-appeal where it challenges the chancellor’s denial of injunctive relief under the Arkansas Trade Secrets Act, since this issue may have merit independent from our decision not to enforce the restrictive covenant." *Bendinger v. Marshalltown Trowel Co., 338 Ark. 410, 994 S.W.2d 468 (1999).*