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April 15, 2025
In early March 2025, Arkansas Governor Sarah Huckabee Sanders signed Senate Bill 139 to amend the State’s non-competition (non-compete) statute (Arkansas Code § 4-75-101) to declare void any non-compete that restricts the right of a physician to practice within the physician’s scope of practice. See 2025 Ark. SB 139. The law is expected to take effect in mid-July 2025, 91 days after the end of the current legislative session. It is unclear, at this time, whether the law will apply retroactively.
As used in the amendment, “physician” means a person authorized or licensed to practice medicine under the Arkansas Medical Practices Act and a person authorized to practice osteopathy under Arkansas law.
Arkansas is the sixth state to ban non-competes with physicians, joining Illinois, Iowa, Louisiana, Pennsylvania, and Rhode Island.
Arkansas Employers of Physicians: It’s time to review and evaluate the post-employment restrictions of your physicians to ensure compliance with the law. Seek legal counsel with questions.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Arkansas, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.