Arkansas bans noncompetes for all physicians
Beginning in July, physicians in Arkansas will no longer have to abide by noncompete agreements, thanks to a bill signed into law by Gov. Sarah Huckabee Sanders.
SB 139, titled “To Clarify That a Covenant Not to Compete Agreement Is Unenforceable for Certain Licensed Medical Professionals," quickly passed the state house and senate, having only been introduced in late January.
The bill amends the state’s existing noncompete regulation, which currently allows for employment contracts to restrict physician movement within a certain area. The new statute will effectively ban the custom for anyone licensed to practice medicine in Arkansas.
It remains unclear if the new framework would retroactively apply to physicians banned from joining their current employer’s competitor, but there’s a good chance it does, given that the language effectively makes noncompete clauses unenforceable.
HealthExec reached out to Sanders’ office for clarity.
Bans are trendy
Arkansas joins a growing list of states that have banned noncompetes for medical professionals, a list that includes California, Minnesota, North Dakota, Oklahoma and Maryland.
Last year, the Federal Trade Commission (FTC) outlawed such agreements at for-profit entities nationwide. However, that rule has since been struck down by a federal court and remains in limbo.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.