Updated October 16, 2023
An Arkansas non-solicitation agreement is a legal document that limits the ability of an employee to use valuable company information for their own benefit. The agreement contains terms prohibiting the employee from seeking out the clients, employees, and contractors of the company if the employee leaves and takes a new position with a competitor. This way, non-solicitation agreements help discourage competitors from “poaching” employees.
Is It Legally Enforceable in Arkansas?
Yes. Non-solicitation agreements are enforceable as long as:
- They protect a valid interest
- Geographical restrictions are not overly broad
- The agreement contains a reasonable time limit
(Moore v. Midwest Distribution, Inc., 65 S.W.3d 490, 493 (Ark. 2002))
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What Types of Solicitation Can Be Prohibited?
In Arkansas, a non-solicitation agreement can prohibit an employee from soliciting:
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Former or Current Employees
In addition to former or current employees, this can include contractors, affiliates, and similar parties of the employer under which a business relationship has been created.
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Former or Current Customers
This can include any former or current customers, clients, and similar business relationships of the employer.
What Should Be Included in the Agreement?
1. Time Limit
In Arkansas, a reasonable time limit must be applied to the covenant for the agreement to hold up in a court of law.
2. Geographical Restraint
The agreement must specify a geographical limit for the terms of the covenant that is not overly broad.
3. Specific Action
The terms must list exactly what the individual is restricted from doing as part of the agreement. This includes whether they are prohibited from contacting all employees and clients or specific ones.
Related Forms
Arkansas Non-Compete Agreement
Download: PDF, MS Word, OpenDocument
Arkansas Non-Disclosure Agreement
Download: PDF, MS Word, OpenDocument