SmallBizHandbookSmallBizHandbook

Are Non-Competes Enforceable in Arkansas?

Last updated: 2026-10-07 · Verified against the statutes 2026-10-07

Enforceable — statute sets rules

Enforceable if reasonable; void for physicians

Arkansas enforces an employee non-compete that protects a 'protectable business interest' (trade secrets, intellectual property, customer lists, goodwill with customers and similar) and is no broader in time and scope than necessary. A two-year post-employment restriction is presumed reasonable, a covenant need not name a geographic area, and continued employment is enough consideration. Courts must reform an overbroad covenant. Since 2025, a covenant restricting a physician's right to practice is void.

Check a non-compete

Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.

Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).

Enforceable if reasonable

Arkansas enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.

Other Arkansas rules to check

  • If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.

General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.

Arkansas non-compete rules

Duration
2 years presumed reasonable unless facts clearly show otherwise
Signed mid-employment
Yes - the statute says continued employment is sufficient consideration.
Overbroad covenants
Courts may narrow an overbroad covenant to what's reasonable

Profession-specific rules

  • VoidA covenant that restricts the right of a licensed physician (MD or DO) to practice within the physician's scope of practice is void (Act 232 of 2025). The general statute does not otherwise apply to holders of professional licenses under Title 17, Subtitle 3, who remain under common law. Act 232 of 2025 (SB 139)

Recent and pending changes

  • March 4, 2025: Act 232 (SB 139) approved: physician non-competes void; professional licensees under Title 17, Subtitle 3 excluded from the general statute. Act 232 of 2025

Federal law

There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.

Frequently asked questions

Are non-competes enforceable in Arkansas?

Enforceable if reasonable; void for physicians. Arkansas enforces an employee non-compete that protects a 'protectable business interest' (trade secrets, intellectual property, customer lists, goodwill with customers and similar) and is no broader in time and scope than necessary. A two-year post-employment restriction is presumed reasonable, a covenant need not name a geographic area, and continued employment is enough consideration. Courts must reform an overbroad covenant. Since 2025, a covenant restricting a physician's right to practice is void.

How long can a non-compete last in Arkansas?

2 years presumed reasonable unless facts clearly show otherwise

Did the FTC ban non-competes in Arkansas?

No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.

Official Sources

Figures checked against these sources on 2026-10-07

Other states

Same category (Enforceable — statute sets rules): Alabama, Florida, Georgia, Hawaii, Idaho, Louisiana, Michigan, North Carolina

Protect information instead with a confidentiality agreement (NDA generator), or hiring in Arkansas? Use the offer letter generator.

Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Arkansas.