Non-compete laws · AR
Arkansas physician non-compete law
As of October 21, 2026, Arkansas law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.
Generally banned for physiciansChecked 2026-10-21
Since Act 232 of 2025, a noncompete ancillary to employment that restricts a physician (MD or DO) from practicing within the physician's scope of practice is void. Covenants tied to a business sale or other non-employment relationships fall outside this statute. (Ark. Act 232 of 2025 (SB 139), approved 3/4/2025)
Changed recently. The current rule took effect 2025-08-05. Pages and guides written before then may describe the old rule.
Who it covers
Physicians authorized or licensed to practice medicine under the Arkansas Medical Practices Act and persons authorized to practice osteopathy. Other persons licensed under Ark. Code Title 17, Subtitle 3 (medical professions) are excluded from § 4-75-101's framework, so common law applies to them.
Exceptions
- § 4-75-101 does not apply to covenants ancillary to other contractual relationships, including the sale and purchase of a business, franchise agreements, and any agreement not ancillary to employment; common law governs those (§ 4-75-101(h))
- Does not impair protections under the Arkansas Trade Secrets Act (§ 4-75-101(j)(1))
Effective date
The current rule took effect 2025-08-05.
Notes
Act 232 has no emergency clause; the Aug. 5, 2025 effective date follows the Arkansas Attorney General's opinion on the 2025 general effective date (reported in secondary sources; the opinion was not loaded). The Act does not say whether it reaches agreements signed earlier. Other licensed health professionals remain under common law.
Sources
- Ark. Act 232 of 2025 (SB 139), approved 3/4/2025 (session-law)
- Arkansas Legislature, Code Sections Amended, Title 4, 2025 Regular Session (bill)
- Arkansas Legislature, Code Sections Amended, Title 4, 2026 Fiscal Session (bill)
- Mitchell Williams, 2025 Arkansas insurance legislation summary (reports AG Op. 2025-032: acts without emergency clause effective Aug. 5, 2025) (secondary)
- Littler, Arkansas Bans Physician Non-Compete Agreements (secondary)
Questions to ask about your contract
- Is the radius measured from your practice site or from every location the employer owns?
- Does the restriction apply if the employer terminates you without cause?
- Is there a buyout, and how is the amount calculated?
- What does your state's law say about physician non-competes?
Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Arkansas.