Alabama Sample Noncompete Clauses
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How to fill out Sample Noncompete Clauses?
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FAQ
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.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
Most non-compete contracts prohibit competitive activity by the ex-employee within a certain number of miles of the employer's business. The typical language prohibits competitive activity within a 15 to 25 mile radius of the employer's business.
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.
Alabama 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.
compete agreement is a legal agreement or clause in a contract specifying that an employee must not enter into competition with an employer after the employment period is over.
Non-competition clause examples include: Example 1: Preventing former employees from using trade secrets. Example 2: Stopping contractors from competing with you. Example 3: Former partners limiting the geographical reach.
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).
Here are some tips:What is a noncompete agreement?Keep the group small.Keep the restrictions reasonable and narrow.Provide consideration for the agreement.Get it in writing.Prepare multiple versions if necessary.Concede choice of law/forum.Provisions to include.
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.
