Arkansas 2021 Regular Session Status: In Committee

SB 665 — TO MODIFY THE STATUTES CONCERNING COVENANT NOT TO COMPETE AGREEMENTS.

Last action — Died in Senate Committee at Sine Die adjournment.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

  • SB 665 Current pdf

How this bill changes current law

7 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill modifies the statute concerning covenants not to compete in Arkansas, primarily by imposing stricter limitations on their enforceability and defining terms related to protectable business interests.

  • 4-75-101(d)

    two (2) years → one (1) year

    Reduces the presumptively reasonable duration of post-termination restrictions from two years to one year.

  • 4-75-101(b)(1)(E)

    his or her → the employer's

    Clarifies the language regarding the knowledge of the employer's business practices.

  • 4-75-101(c)(1)

    covenant not to compete agreement satisfies the requirements of subsection (a) of this section. → whether or not a

    Adds clarity to the consideration of geographic descriptive restrictions in covenants not to compete.

  • 4-75-101(f)(1)

    covenant not to compete agreement is unenforceable. → the court shall reform the covenant not to compete agreement to the extent necessary to:

    Changes language to mandate that courts reform unreasonable covenants instead of making them unenforceable.

  • 4-75-101(j)(1)

    This section shall does not apply → This section shall does not apply to other types of agreements

    Clarifies that the provisions do not apply to agreements unrelated to competition.

  • 4-75-101(k)(2)

    the employer is responsible for the attorney's fees incurred by the employee. → the employer that does not prevail in the employer's attempt to enforce a covenant not to compete agreement against an employee is responsible for the attorney's fees incurred by the employee.

    Specifies that employers failing to enforce covenants are liable for employee attorney fees.

  • 4-75-101(h)(1)

    the covenant not to compete agreement that is ancillary to other contractual relationships, including any type of agreement for the sale and purchase of a business, franchise agreement, and any other agreement not ancillary to an employment relationship or employment contract. → a covenant not to compete agreement that is ancillary to other contractual relationships, including any type of agreement for the sale and purchase of a business, franchise agreement, and any other agreement not ancillary to an employment relationship or employment contract.

    Clarifies what types of covenants not to compete are excluded from the statute.

Action History

  1. Died in Senate Committee at Sine Die adjournment.

  2. Read first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE

  3. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 1 co-sponsors · 135 not signed on

Sponsors (2)

Co-sponsors (1)

Not signed on (135)

135 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

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Frequently asked questions

Who sponsors SB 665?
SB 665 is sponsored by Ricky Hill, Gonzales, and B. Ballinger.
What is the current status of SB 665?
This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 665?
Track SB 665 free on One Click Politics — get push/email alerts when it moves.

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Last checked for changes 3 months ago · updated continuously

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