Jackson Lewis: New Arkansas Law Permits Blue-penciling of Employment Non-Compete Agreements | Practical Law
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This Law Firm Publication by Jackson Lewis P.C. discusses a new Arkansas non-compete law (S.B. 998 or Act 921) recently signed by Arkansas Governor Asa Hutchinson that allows courts to rewrite otherwise unreasonable or overly broad portions of an employment non-compete agreement without striking down the entire agreement. Previously, Arkansas did not permit blue-penciling of non-compete agreements. The new law also provides more specific guidelines to employers regarding applicable standards for what constitutes an enforceable non-compete agreement in Arkansas, clarifying that continued employment is sufficent consideration for a non-compete restriction and that post-termination restrictions of two years are presumptively reasonable unless shown otherwise based on the facts and circumstances. The new law, which does not apply to non-solicitation and non-disclosure agreements, takes effect on August 6, 2015.