The bill aims to clarify that covenants not to compete are unenforceable for certain licensed medical professionals in Arkansas. It amends Arkansas Code 4-75-101 by changing the term "subsection" to "section" in relation to the applicability of such agreements. The bill specifies that existing common law standards governing covenants not to compete outside of employment relationships will remain in effect, ensuring that these agreements do not apply to ancillary contracts related to business sales or franchises.

Additionally, the bill introduces a new provision stating that any covenant not to compete that restricts a licensed professional's right to practice within their scope upon termination of the agreement is void. This provision reinforces the protections for licensed medical professionals, ensuring they can continue their practice without undue restrictions after leaving an employment relationship. The bill also clarifies that it does not impair rights under the Arkansas Trade Secrets Act.

Statutes affected:
Old version HB1130 Original - 1-12-2023 02:08 PM: 4-75-101(h), 4-75-101(j)
Old version HB1130 V2 - 3-30-2023 10:50 AM: 4-75-101(h), 4-75-101(j)
HB 1130: 4-75-101(h), 4-75-101(j)