Updated April 19, 2022
An Arkansas non-solicitation agreement is a legal document that limits the ability of an employee to make use of information gained while working for a firm after the employee is no longer working at the firm. The agreement contains terms prohibiting the employee from seeking out the customers, clients, employees, and contractors of the firm if the employee leaves and takes a new position with a competitor. In this way, non-solicitation agreements help discourage competitors from “poaching” employees.
Legally Enforceable in Arkansas?
Yes, non-solicitation agreements are enforceable so long as (i) they protect a valid interest, (ii) geographical restrictions in the agreement are not overly broad, and (iii) the agreement contains a reasonable time limit. Moore v. Midwest Distribution, Inc., 65 S.W.3d 490, 493 (Ark. 2002).