Are Non-Compete Agreements Enforceable In Arkansas

Sep 11, 2021   //   by admin   //   Uncategorized  //  No Comments

With a higher bargaining power “exercised by the employer” in the formation of most non-competition clauses, there remains a strong presumption of injustice that accompanies the application of these contracts. [133] This is particularly problematic when contracts such as non-compete clauses often contain unenforceable clauses. [134] The legitimate concern of the courts to affix a blue pencil and amend these unenforceable agreements in their written version is to encourage and reward employers who develop overly broad provisions by simply changing the agreement to make it appropriate. [135] Similarly, many cases in Arkansas have previously held that geographically unlimited competition prohibitions are inappropriate and unenforceable. Consequently, the possibility of a non-competition clause without geographical restriction constitutes a significant departure from previous case-law. This provision also recognizes that modern commercial interests often go beyond geography. The enforcement of non-competition rules creates well-documented problems, as many employees feel that implementation is “particularly unfair because their employers only mentioned the agreements after they accepted the work and started working.” [123] Some proponents of non-competition argue that most non-compete agreements involve managers and employees who are demanding in terms of higher education and wages, which makes the agreements “favourable to workers with bargaining power, because they would not sign them,” it did not serve their best interests. [124] Under the new law, employers have greater flexibility in developing non-competition rules, with a court being able, if necessary, to amend a provision instead of invalidating the entire contract. Common law principles continue to apply with respect to the authorization of measures to protect commercial interests. Bud Anderson`s decision is remarkable in two ways. First, after the non-compete clause expires, Arkansas employers can impose non-compete rules and thus obtain longer competition bans, which would normally be deemed inappropriate and invalid by the courts.

Second, Arkansas employers who want to impose non-compete rules can use a “usable” standard that is easier to meet than a “real use” standard. Given that the Bud Anderson decision raises not one, but two first-impression issues, it would not be surprising if the case eventually ends up in the Arkansas Supreme Court. If you have been presented with a competition or non-posting agreement or have been accused of having infringed an agreement, you have legal assistance. Contact both a lawyer for Little Rock`s competition and non-cancellation agreements to find out which medium might be an option. If you find yourself in this situation, it is also important to understand what are the terms of the agreements, the laws that protect companies, the legal right granted to you. Whether or not employers intend to restrict their workers` economic opportunities by imposing a non-compete clause, the “Blue Pencil” remedy could still have the effect of imposing unreasonable hardship on the workers themselves by simply changing the application of those agreements. Therefore, Arkansas courts should at least consider the impact that geographic and temporal limitations may have on the worker`s interests, regardless of the adequacy of the provisions of the agreement. Perhaps even more important is to have a mandatory approach to the implementation of Blue Pencil to protect the interests of employees, especially when the worker`s interest in future employment, mobility and expertise acquired before employment are interests that are reflected by society as a whole and are essential for the sustainable success of the public economy. [88] While the competition bans are not theoretically intended to sanction the former worker,[144] the liberal approach to implementing Blue Pencil is likely to have this effect if it does not take into account the unreasonable harshness imposed on workers, the public and the public economy. . . .

 

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