The proposed bill aims to prohibit covenant not to compete agreements in the state of Arkansas. It amends the existing law by defining a "covenant not to compete" as any agreement that restricts an individual's ability to compete with their former employer after termination of employment. The bill explicitly states that such agreements are prohibited, and individuals are allowed to engage in similar business activities as their former employer, provided they do not solicit established customers of that employer.

Additionally, the bill removes previous provisions that allowed for the enforcement of these agreements under certain conditions, such as the existence of a protectable business interest and reasonable limitations regarding time and scope. It also clarifies that the prohibition does not apply to other types of agreements, such as nonsolicitation or confidentiality agreements, and maintains existing common law standards for those agreements. Overall, the bill seeks to enhance employee mobility and reduce restrictions on individuals seeking to work in their field after leaving a job.