Arkansas Employee Agreement with Covenant not to Compete
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How to fill out Employee Agreement With Covenant Not To Compete?
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FAQ
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.
Covenants not to compete are frequently enforced to prevent a former employee from soliciting his or her former customers to buy competing products or services from the new employer.
Business and Commercial Law § 4-75-101. Covenant not to compete agreements. (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.
How to Deal with a Non-Compete Agreement Talk to a Lawyer. ... Consider the Scope of the Agreement. ... Limit the Scope of the Agreement. ... Exclude Certain Activities from the Agreement. ... Negotiate a ?Severance Package? in Exchange for Signing the Agreement. ... Don't Sign the Agreement If You Disagree or Don't Understand It.
Act 921 embraces the ?blue pencil? rule, which allows for courts to reform an otherwise unreasonable or overbroad non-compete provision. This is a significant departure from prior Arkansas law. Previously, an overly-broad non-compete provision would have rendered the entire non-compete agreement unenforceable.
California law bars covenants not to compete in nearly all circumstances.
The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.
Noncompetes prohibit employees from working for corporate competitors or opening their own competing business within a geographic area for a certain period of time after they leave a company.