Alabama Non-Compete Agreement for Employees

State:
Multi-State
Control #:
US-516EM-1
Format:
Word; 
Rich Text
Instant download

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FAQ

It's also important to note that Alabama courts do not necessarily enforce non-compete agreements under the New Act retroactively. This also holds true for the non-compete agreements that express a specific provision for retroactive application.

Two years is presumed to be reasonable for a non-compete agreement. Eighteen months is presumed to be reasonable for a non-solicitation agreement. One year or less is presumed to be reasonable for a non-compete or non-solicitation agreement arising out of the sale of the good will of a business.

compete clause that covers a particular city and spans a period of three months, however, could be enforceable depending on the employer's industry. Although noncompete clauses are seldom upheld in court, companies will protect their interests in other ways.

Non-competes no good against independent contractors. The Alabama Supreme Court has also construed the wording of the current statute's predecessor (language also contained within the current statute) to preclude enforcement of non-compete agreements against independent contractors (as distinguished from employees).

It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

Alabama Non-Compete LawAlabama law generally frowns upon non-compete agreements, stating that every contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind otherwise is void.

In order to be enforceable, a non-compete agreement must include an offer, acceptance, intent, and a benefit or consideration to the employee in exchange for his or her promise. The benefit could be as simple as getting the job or, for an existing employee, getting a promotion or raise.

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Alabama Non-Compete Agreement for Employees