SB139

Senate Bill 139 seeks to amend Arkansas law regarding covenants not to compete (non-compete agreements) as they apply to specific medical professionals. The bill explicitly declares that any covenant not to compete that restricts a physician's right to practice within their scope of practice is void. The legislation defines "physician" to include those authorized or licensed to practice medicine under the Arkansas Medical Practices Act and those authorized to practice osteopathy. It further clarifies that these changes do not apply to non-compete agreements ancillary to the sale of a business or franchise agreements, nor does it impact protections under the Arkansas Trade Secrets Act. The bill effectively prohibits hospitals and medical groups from enforcing non-compete clauses against these specific categories of medical providers in employment contracts. The objective is to limit restrictions on the professional mobility of physicians and osteopaths in the state.