Non-Compete Agreements: Must an Employer Pay an Employee for a Non-Compete to Be Enforceable?

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

Download PDF

Yes. However, for many non-competes, an employee’s continued employment is sufficient. For non-competes signed after July 21, 2015, the statute explicitly states that an employee’s continued employment is sufficient consideration. Ark. Code Ann. § 4-75-101 (g). For non-competes signed on or before July 21, 2015, the case law requires consideration but does not specify what constitutes a sufficient amount. Office Machs., Inc. v. Mitchell, 234 S.W.3d 906, 908 (Ark. Ct. App. 2006). The reality is that continued employment will almost always constitute sufficient consideration in Arkansas.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. | Attorney Advertising

Written by:

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide