Arkansas Agreement Creating Restrictive Covenants

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Multi-State
Control #:
US-0064BG
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Word; 
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Description

If you are planning on buying a home, condominium, townhouse, or other property, you must take note of whether any restrictive covenants will affect your ability to use your new residence.

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FAQ

Restrictive covenants in the labor and employment context are agreements between an employer and employee that restrict the activities of an employee following a separation of employment.

Are There Any Ways I Can ?Get Around? a Non-Compete Agreement? Being able to prove that your employer is in breach of contract. Proving that there is no valid legitimate interest to enforce the non-compete agreement. Prove the agreement's time frame is unreasonable.

Are discriminatory restrictive covenants illegal? Generally, yes. Since the United States Supreme Court's 1948 decision in the case Shelley v. Kraemer, restrictive covenants based on race have been unenforceableA contract will not be enforced by a court of law..

Generally speaking, a covenant not to compete , or noncompete agreement, is a promise in an employment contract not to engage in the same type of business for a stated time in the same market as the employer. When these agreements are found by courts to be unenforceable, it leaves employers vulnerable to competitors.

A noncompete provision is enforceable if it is ancillary to an employment relationship or an otherwise enforceable employment contract to the extent that the employer has a protectable business interest (which may include, by statute: trade secrets, intellectual property, customer lists, goodwill with customers, ...

Arkansas Law prohibits the hiring of relatives by public officials and prohibits a state agency and institution employee from supervising a relative. Employee: A person whose employment is not seasonal or temporary and whose ac- tual performance of duty requires one thousand (1,000) or more hours during a fiscal year.

Code § 4-75-101. Covenant not to compete agreements: Unfair Practices ? General Provisions ? Arkansas. 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 contractt.

To be enforceable, the restrictive covenant must define reasonable limits, either ing to a period of time, geographical area, or type of work. In some states, such as California, there are specific laws that make non-solicitation agreements unenforceable unless they are introduced to protect trade secrets.

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Arkansas Agreement Creating Restrictive Covenants