Jackson Lewis: New Arkansas Law Permits Blue-penciling of Employment Non-Compete Agreements | Practical Law

Jackson Lewis: New Arkansas Law Permits Blue-penciling of Employment Non-Compete Agreements | Practical Law

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.    

Jackson Lewis: New Arkansas Law Permits Blue-penciling of Employment Non-Compete Agreements

by Jackson Lewis P.C.
Published on 12 May 2015Arkansas, United States
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.