Arkansas healthcare employers will no longer be able to block physicians from working for a competitor as the state becomes the latest to limit the use of noncompete agreements.
Arkansas Gov. Sarah Huckabee Sanders (R) signed a bill earlier this month that augments existing state law by voiding noncompete provisions in physician contracts that would prevent them from joining a rival organization. The law will take effect in mid-July.
Related: FTC looks to revive noncompete ban through appeals
Sanders’ office did not immediately respond to questions on whether the legislation applies to existing workforce contract clauses.
Arkansas joins several other states, including Pennsylvania, Maryland and Illinois, which have outlawed noncompete agreements tied to clinicians. California, Minnesota, North Dakota and Oklahoma have blanket noncompete bans for all employers.
An increasing number of states, such as Massachusetts, New York and Michigan, have introduced legislation over the past year that aims to curb the use of noncompete agreements.
The Federal Trade Commission finalized a sweeping rule last year that looked to block most noncompetes. However, an appellate court struck down the regulation in August. The commission appealed the ruling in October, and the case is ongoing.
