Arkansas Labor Laws

Arkansas Non Compete Law: Is Yours Enforceable? — Best Proven Guide (2026)

By Oleg Kachko · Updated October 8, 2026
✓ Verified October 2026

Arkansas non compete law restricts non competes by statute: arkansas enforces a non compete that is ancillary to employment if the employer has a protectable business interest (trade secrets, confidential information, customer lists, specialized training) and the time and scope limits are no greater than needed to protect it; two years after termination is presumed reasonable, no geographic limit is required, continued employment counts as consideration,

and irreparable harm from a breach is presumed.

This guide gives the exact Arkansas non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Arkansas Department of Labor and Licensing or an attorney before you rely on it.

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Arkansas Non Compete Law at a Glance

Status Restricted by statute
Income threshold No earnings threshold
Statute Ark. Code 4-75-101 (Act 921 of 2015, SB 998)
Notice / consideration Continued employment is sufficient consideration for a current employee (4-75-101(b))
Carve-outs Licensed medical professionals are outside the Act (common law applies); the Act does not reach non competes outside the employment context
Overbroad terms reform — a court must modify an overbroad covenant to reasonable limits and enforce it as modified (before 2015 Arkansas voided the whole covenant)
In effect since August 6, 2015 (Act 921 of 2015)

Is a Non Compete Enforceable Under Arkansas Non Compete Law?

Arkansas enforces a non compete that is ancillary to employment if the employer has a protectable business interest (trade secrets, confidential information, customer lists, specialized training) and the time and scope limits are no greater than needed to protect it; two years after termination is presumed reasonable, no geographic limit is required, continued employment counts as consideration, and irreparable harm from a breach is presumed. The statute is Ark.

Code 4-75-101 (Act 921 of 2015, SB 998). The carve-outs matter: licensed medical professionals are outside the Act (common law applies); the Act does not reach non competes outside the employment context.

⚠ Under Arkansas non compete law, a non compete is enforced only inside the statute’s limits. The words of your own agreement decide the rest — read them before you turn down an offer.

Arkansas Non Compete Law at a Glance

Rules verified against the statute on 2026-10-08; confirm the current rule with Arkansas Department of Labor and Licensing or an attorney before you rely on it. The statute row is where to check it yourself.

Status Restricted by statute
What the rule says Arkansas enforces a non compete that is ancillary to employment if the employer has a protectable business interest (trade secrets, confidential information, customer lists, specialized training) and the time and scope limits are no greater than needed to protect it; two years after termination is presumed reasonable, no geographic limit is required, continued employment counts as consideration, and irreparable harm from a breach is presumed.
Income threshold No earnings threshold
Statute Ark. Code 4-75-101 (Act 921 of 2015, SB 998)
Notice or consideration rule Continued employment is sufficient consideration for a current employee (4-75-101(b))
Carve-outs Licensed medical professionals are outside the Act (common law applies); the Act does not reach non competes outside the employment context
What a court does with an overbroad term reform — a court must modify an overbroad covenant to reasonable limits and enforce it as modified (before 2015 Arkansas voided the whole covenant)
In effect since August 6, 2015 (Act 921 of 2015)

The Reasonableness Test Under Arkansas Non Compete Law

An Arkansas court first asks whether the employer has a real business interest to protect, such as trade secrets, customer lists, customer goodwill, confidential pricing or cost information, or specialized training it paid for. Next it checks whether the time limit, the geographic area and the type of work restricted go no further than needed to protect that interest.

Courts look at the nature of the employer’s business when they weigh these limits. A restriction is not invalid just because it has no specific geographic limit, as long as its length and scope are narrow enough.

The Arkansas statute says a restriction of up to 2 years is presumed reasonable unless there are compelling circumstances against it, so terms of 1 to 2 years are the ones most often upheld.

Courts generally reject restrictions that cover work or territory the worker never actually handled, but under the statute a judge must narrow, or “reform,” an overbroad agreement to a reasonable scope rather than throw it out completely. With an overbroad term the court will reform — a court must modify an overbroad covenant to reasonable limits and enforce it as modified (before 2015 Arkansas voided the whole covenant).

Arkansas Non Compete Law If You Were Fired or Laid Off

The Arkansas statute does not make an exception for workers who were fired or laid off, so the agreement’s terms usually control whatever the reason the job ended. How the job ended may still matter when a court decides fairness or whether to grant an injunction, so confirm with an Arkansas employment attorney how this applies to you.

What the Employer Must Give Under Arkansas Non Compete Law

Continued employment is sufficient consideration for a current employee (4-75-101(b)) The Arkansas statute applies to non competes that are part of an employment relationship or an otherwise enforceable employment agreement. Arkansas courts have generally treated continued employment as enough exchange for a non compete signed by a current employee, though the wording of the agreement and the circumstances can matter.

Non Solicit and Non Disclosure Agreements Under Arkansas Non Compete Law

A non solicit agreement only bars you from going after the former employer’s customers or staff, and a non disclosure agreement only bars you from using or sharing confidential information. Neither one stops you from working in your field, so courts generally find them easier to enforce, and the Arkansas Trade Secrets Act protects trade secrets separately from any non compete.

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If You Already Signed One: Arkansas Non Compete Law in Practice

Read the agreement closely for its length, the area it covers, the work it restricts, and whether it applies no matter how the job ended. Before you accept a new offer, consider asking your former employer for a written release, or for written confirmation that the new role is not covered.

Have an Arkansas employment attorney look over the agreement and the new offer before you start, because the statute lets courts narrow an overbroad agreement rather than void it.

An Arkansas employer can ask a court for an injunction ordering the worker to stop the restricted work, and it can also seek money damages for losses it can prove were caused by the breach. Attorney fees are usually available only if the agreement itself provides for them.

The Federal Rule and Arkansas Non Compete Law

The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Arkansas non compete law controls. Act 232 of 2025 (SB139), signed March 4, 2025, amended Ark.

Code § 4-75-101 to make non competes void when they restrict a licensed physician’s right to practice within the physician’s scope of practice. No 2026 amendment to the non compete statute has been confirmed.

Other Arkansas Non Compete Law Rules to Know

Arkansas’s statute requires courts to reform an overbroad non compete to a reasonable scope instead of throwing it out entirely. It also presumes a restriction of up to 2 years is reasonable, and since 2025 non competes that restrict a physician’s practice are void.

Think your employer owes you money or broke the law?

A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.

Arkansas — the bottom line

  • Arkansas non compete law is a statute with its own limits — the first thing to check is which side of the line your agreement falls on.
  • Under Arkansas non compete law, an overbroad term is reform — a court must modify an overbroad covenant to reasonable limits and enforce it as modified (before 2015 Arkansas voided the whole covenant) — the words of your own agreement decide more than the headline rule.
  • Arkansas non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.

Frequently Asked Questions

Are non competes enforceable in Arkansas?

Sometimes. Arkansas enforces a non compete that is ancillary to employment if the employer has a protectable business interest (trade secrets, confidential information, customer lists, specialized training) and the time and scope limits are no greater than needed to protect it; two years after termination is presumed reasonable, no geographic limit is required, continued employment counts as consideration, and irreparable harm from a breach is presumed.

Is there an income threshold under Arkansas non compete law?

No. Arkansas has no earnings threshold; enforcement turns on whether the agreement is reasonable.

What does an Arkansas court do with an overbroad non compete?

Reform — a court must modify an overbroad covenant to reasonable limits and enforce it as modified (before 2015 Arkansas voided the whole covenant).

Can my employer enforce a non compete in Arkansas after firing me?

The Arkansas statute does not make an exception for workers who were fired or laid off, so the agreement’s terms usually control whatever the reason the job ended.

I signed a non compete in Arkansas and have a new offer — what should I do?

Read the agreement closely for its length, the area it covers, the work it restricts, and whether it applies no matter how the job ended. Before you accept a new offer, consider asking your former employer for a written release, or for written confirmation that the new role is not covered.

Official Arkansas Sources & Resources

This Arkansas non compete law guide was last verified against official Arkansas sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.

More Arkansas Workplace Rights Guides

Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.

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