Bill > SB139

This bill amends Arkansas law regarding covenant not to compete agreements (CNCs), specifically focusing on medical professionals. The bill adds a new provision that makes any covenant not to compete agreement restricting a physician's ability to practice within their professional scope of practice automatically void. For the purposes of this bill, "physician" is defined broadly to include those licensed to practice medicine under the Arkansas Medical Practices Act and those authorized to practice osteopathy. The bill maintains existing protections for trade secrets and clarifies that the law does not impact CNCs in contexts outside of employment, such as business sales or franchise agreements. Importantly, the legislation aims to prevent medical professionals from being constrained in their ability to practice medicine by overly restrictive employment contracts, which could potentially limit patient access to healthcare services or a physician's professional mobility. The bill represents a significant protection for licensed medical professionals by ensuring they cannot be contractually prevented from practicing their profession within their established scope of practice.