Stricken language would be deleted from and underlined language would be added to present law.
Act 232 of the Regular Session
*ANS095* 01/28/2025 4:56:08 PM ANS095
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 139 3
4
By: Senator J. Boyd 5
By: Representative Gramlich 6
7
For An Act To Be Entitled 8
AN ACT TO CLARIFY THAT A COVENANT NOT TO COMPETE 9
AGREEMENT IS UNENFORCEABLE FOR CERTAIN LICENSED 10
MEDICAL PROFESSIONALS; AND FOR OTHER PURPOSES. 11
12
13
Subtitle 14
TO CLARIFY THAT A COVENANT NOT TO 15
COMPETE AGREEMENT IS UNENFORCEABLE FOR 16
CERTAIN LICENSED MEDICAL PROFESSIONALS. 17
18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
20
SECTION 1. Arkansas Code § 4 -75-101(h), concerning ancillary 21
agreements and existing common law standards governing covenant not to 22
compete agreements, is amended to read as follows: 23
(h)(1) This subsection section does not apply to a covenant not to 24
compete agreement that is ancillary to other contractual relationships, 25
including any type of agreement for the sale and purchase of a business, 26
franchise agreement, and any other agreement not ancillary to an employment 27
relationship or employment contract. 28
(2) Existing common law standards governing a covenant not to 29
compete agreement outside the employment background shall remain in effect. 30
31
SECTION 2. Arkansas Code § 4 -75-101(j), concerning the applicability 32
of covenant not to compete agreements, is amended to read as follows: 33
(j) This Except as provided under subsection (k) of this section, this 34
section shall not: 35
(1) Be read to impair, limit, or change a party's protections 36 SB139
2 01/28/2025 4:56:08 PM ANS095
and rights under the Arkansas Trade Secrets Act, § 4-75-601 et seq.; or 1
(2) Apply to a person holding a professional license under 2
Arkansas Code Title 17, Subtitle 3. 3
4
SECTION 3. Arkansas Code § 4-75-101, concerning covenant not to 5
compete agreements, is amended to add an additional subsection to read as 6
follows: 7
(k)(1) A covenant not to compete agreement that restricts the right of 8
a physician to practice within the physician's scope of practice is void. 9
(2) As used in subdivision (k)(1) of this section, "physician" 10
means a person authorized or licensed to practice medicine under the Arkansas 11
Medical Practices Act, § 17 -95-201 et seq., § 17-95-301 et seq., and § 17 -95-12
401 et seq., and a person authorized to practice osteopathy under § 17 -91-101 13
et seq. 14
15
16
APPROVED: 3/4/25 17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36