Arkansas Bans Physician Non-Compete Agreements

On March 4, 2025, Arkansas Governor Sarah Huckabee Sanders signed into law Senate Bill 139, now Act 232 (the "Act"), which amends the state's non-compete statute to provide that non-compete covenants that "restrict the right of a physician to practice within the physician's scope of practice" are void. The term "physician" includes any person authorized or licensed to practice medicine under the Arkansas Medical Practice Act and any person licensed to practice osteopathy under Arkansas law. The Act will take effect 90 days after adjournment of the current legislative session, likely resulting in a mid-July 2025 effective date.

Arkansas's Existing Non-Compete Statute

Arkansas Code Section 4-75-101, entitled "Covenant not to compete agreements," provides statutory factors for determining the enforceability of non-compete agreements signed after July 22, 2015 (the statute's initial effective date). A non-compete agreement is enforceable where it is ancillary to