Alabama Employee Noncompetition and Conflict of Interest Agreement
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How to fill out Employee Noncompetition And Conflict Of Interest Agreement?
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FAQ
The Blue Pencil Rule The final comments ease any lingering concerns that Alabama's strong, traditional blue pencil rule has been compromised by the new statute.
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.
When employers obtain Non-Competes with long-standing employees without providing anything of value in return, they are obtaining an unenforceable agreement. In many cases, the business is in a worse predicament than not having a Non-Compete, since it is relying on an agreement that is not legally enforceable.
The non-compete clause is limited to a specific geographic area with no more than a two-year duration regarding its restrictions. The agreement is to not solicit the current customers of the business in question for up to 18 months maximum.
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.
Non-competes ensure the employee will not use information learned during employment to start a business and compete with the employer once work is over. It also ensures the employer keeps its place in the market. Non-competes should be designed to protect the best interests of the employer and the employee.
Noncompete agreements are traditionally disfavored for two reasons: (1) the policy that an employee should be free to sell his or her own labor at will; and (2) the public interest in unimpeded trade.
Written Contracts Provide Proof of Details It provides the ultimate understanding of the agreement between the owners of a company or its investors, about the services rendered by a third party, or payment obligations to your hired workers. All these things should be stated within the written contract as legal proof.
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.
