Becker’s ASC Review
Arkansas has become the sixth state to ban noncompete agreements for physicians.
Gov. Sarah Huckabee Sanders signed the bill into law on March 4. It is expected to go into effect in mid-July 2025. But it remains unclear whether the law will apply retroactively to agreements signed before the effective date.
The law changes the state’s noncompete statute that restricts the right of a physician to practice within a certain area, voiding noncompetes for anyone who is licensed to practice medicine in the state under the Arkansas Medical Practice Act or other state laws.
Arkansas joins Illinois, Iowa, Louisiana, Pennsylvania and Rhode Island in banning or restricting noncompetes for physicians.