Arkansas Employee Noncompete (Noncompetition) Agreement
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FAQ
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
Governor Asa Hutchinson has signed legislation (S.B. 998 or Act 921) allowing a court to enforce the reasonable parts of a non-competition agreement, while deleting the overbroad, unenforceable provisions, rather than striking down the entire agreement.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
If the court finds the non-compete too restricting, it won't hold up. Too broad or unnecessary: If the employer has created unnecessary restrictions on its employees, the court will not uphold the non-competition clauses.
Non-compete agreements are legally binding restrictive contracts between an employer and an employee. These agreements typically prohibit an employee from directly or indirectly competing with the business for a specific length of time after employment has ended.
Under Arkansas law, a court will enforce a non-compete agreement if the agreement is ancillary to an employment relationship or part of an otherwise enforceable employment agreement or contract to the extent that both: The employer has a protectable business interest.
- The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship.
Non-Competition Agreements can help a business retain valuable employees, protect its confidential information and customers, and prevent unfair competition. They can also be utterly useless.
