This form is a Complaint for an Injunction and Other Relief. The plaintiff asked the court to issue an order enjoining the defendant from further violation of a covenant not to compete in the relevant area. The plaintiff also requests that damages be paid to him/her to compensate for the violation of the covenant.
Arkansas Complaint for Injunction - Covenant not to compete
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Multi-State
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US-CMP-10058
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FAQ
Although governed by individual state laws, common factors include whether the employer has a legitimate interest to protect; whether the geographic scope prevents the worker from making a living; the length of restriction; whether the agreement prevents workers from doing different work from what they are doing; and ...
The Arkansas courts have made it abundantly clear that restrictive non-compete agreements (or ?covenants?) are enforceable if the terms are reasonable and necessary to protect the employer's business interests.
It provides that a restrictive covenant is reasonable, and thus, enforceable, if: (1) its terms are no greater than is required to protect the employer's legitimate business interest; (2) it does not impose undue hardship on the former employee; and (3) it is not injurious to the public.
Covenants not to compete are frequently enforced where the former employer's "confidential information" may be used or disclosed unless the employee is restrained from competing.
Specificity: A non-compete agreement must be specific about the activities it prohibits. Additionally, the covenant must clearly articulate what activities are considered competing and those activities must be substantially similar or related to the work the employee performed for the employer.
A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area.
One of the most important factors courts will often look at when determining the validity of a non-compete agreement is whether it actually protects a legitimate business interest of the employer. If it doesn't, there really isn't any reason to stop the employee from competing against a former employer.
California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.
