Are non-competes enforceable in Arkansas?

Yes, but Arkansas courts disfavor them as restraints on trade. The employer must prove the agreement protects a legitimate business interest, is reasonable in time and geography, and is not oppressive to the employee.

Will Arkansas courts rewrite an overbroad non-compete?

Generally no. Arkansas courts have historically refused to blue-pencil or reform overbroad non-compete agreements. If a court finds the restrictions unreasonable, it may void the entire clause rather than narrowing it.

What is a reasonable non-compete duration in Arkansas?

Arkansas courts have generally upheld non-competes lasting one to two years. Agreements exceeding two years face heightened scrutiny and require stronger justification from the employer.

Non-Compete Clauses in Arkansas: Enforceability Guide

The General Rule in Arkansas

Arkansas enforces non-compete agreements, but courts carefully scrutinize them. The Arkansas Supreme Court has held that restrictive covenants are disfavored as restraints on trade and will only be enforced if they meet specific requirements.

What Arkansas Courts Require

Under Arkansas law, a non-compete must:

Protect a legitimate business interest of the employer
Be reasonable in duration and geographic scope
Not be oppressive to the employee
Be supported by valid consideration

The key case Dawson v. Temps Plus, Inc. (1997) reinforced that the employer bears the burden of proving the agreement is reasonable.

Reasonable Duration and Geography

Duration: Arkansas courts have generally upheld non-competes of one to two years. Agreements exceeding two years receive heightened scrutiny, though they are not automatically invalid.
Geographic scope: Must be tied to the area where the employee actually performed work or developed client relationships. A statewide restriction may be appropriate for employees who worked across Arkansas, but a national scope for a locally-focused role would likely be excessive.

Consideration in Arkansas

For new employees, the offer of employment is sufficient consideration. For existing employees, Arkansas courts have accepted continued employment as consideration in some cases, but providing additional benefits such as a raise, bonus, or promotion strengthens enforceability.

The No-Reformation Approach

Unlike some neighboring states, Arkansas courts have historically declined to blue-pencil or reform overbroad non-competes. If a court finds the agreement unreasonable, it may void the restriction entirely rather than narrowing it. This means employers must get the terms right from the start, and an overbroad clause works in the employee's favor.

Red Flags

Duration beyond two years with no special justification
Geographic scope unrelated to your actual work area
No clear definition of what activities are restricted
Applied to employees without access to trade secrets or confidential information
Signed mid-employment with no new consideration

When to Consult a Lawyer

Consider seeking legal counsel if you are negotiating a non-compete, if you want to leave for a competitor, or if your employer is threatening legal action. Arkansas's refusal to reform overbroad clauses means the specific language in your agreement is critical to the outcome.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.