This bill aims to clarify the enforceability of covenant not to compete agreements specifically for licensed medical professionals in Arkansas. It amends existing law to state that such agreements are unenforceable if they restrict a physician's right to practice within their scope of practice. The bill introduces a new subsection that defines "physician" as individuals authorized or licensed to practice medicine or osteopathy under specified Arkansas statutes.

Additionally, the bill modifies existing language regarding the applicability of covenant not to compete agreements. It specifies that these agreements do not apply to certain contractual relationships outside of employment, while maintaining that common law standards for such agreements remain in effect. The amendments also ensure that the rights and protections under the Arkansas Trade Secrets Act are not impaired by this legislation.

Statutes affected:
SB 139: 4-75-101(h), 4-75-101(j), 4-75-101
Act 232: 4-75-101(h), 4-75-101(j), 4-75-101