HB1130 Summary

• Amends Arkansas Code § 4-75-101(h) to clarify that covenant not to compete agreements ancillary to business sales, franchise agreements, and non-employment contracts remain subject to existing common law standards.

• Adds new subdivision to Arkansas Code § 4-75-101(j) declaring that covenant not to compete agreements do not apply to persons holding professional licenses under Arkansas Code Title 17, Subtitle 3.

• Voids any covenant not to compete agreement or provision that restricts a licensed medical professional's right to practice within their scope of practice after the agreement terminates.

• Preserves protections and rights under the Arkansas Trade Secrets Act and does not impair trade secret enforcement.