Alabama Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers
- Avg cost to draft a Non-Compete Agreement: $550.00
- Avg cost to review a Non-Compete Agreement: $350.00
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- Clients helped: 283 recent noncompete agreement projects
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Is a Non-Compete Agreement Enforceable in Alabama?
In Alabama non-compete agreements can be enforceable, but under state laws that went into effect in January of 2016, these restrictive covenants cannot prevent anyone from exercising a “lawful profession, trade, or business”.
To be enforceable, Alabama courts have determined that non-compete agreements must be reasonable in scope and duration and cannot impose undue hardship on the employee. The agreement must be related to the employer's legitimate business interests, such as protecting trade secrets or customer relationships.
How Long Does an Alabama Non-Compete Agreement Last?
Under Alabama law, the maximum duration for a non-compete agreement cannot exceed two years. That means, that after an employee leaves a company, they can only be bound by the terms of the non-compete agreement for up to two years.
How Do You Get Around a Non-Compete Agreement in Alabama?
Non-compete agreements can be overcome in the following ways:
- Prove there is no legitimate business interest to enforce the non-compete.
- Prove the contract duration is an unreasonable amount of time.
- Prove that the non-compete agreement goes against public health or safety.
In Alabama, state laws permit a practice called “ blue penciling ”. This allows courts to modify non-compete agreements that are overly broad or unreasonable. If you can’t get around a non-compete agreement, you may be able to convince a court to modify the contract to protect your interests.
What Voids an Alabama Non-Compete Agreement?
Some factors that may make a non-compete agreement void in Alabama include:
- Being overly broad in scope, duration or geographic area.
- Imposing undue hardship on the employee.
- Prohibiting competition with a former employer in a field unrelated to the employer's business.
- Unfairly limiting the employee's ability to make a living.
- The agreement is not supported by consideration.
A non-compete agreement will also be deemed void if it is not in writing and not signed by both parties.
Frequently Asked Questions
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David B.
A twenty-five year attorney and certified mediator native to the Birmingham, Alabama area.
"David was able to meet my turnaround time and still do a thorough job and provide great feedback on my document."
Lolitha M.
Small firm offering business consultation and contract review services.
"Did great. She was responsive even after hours, will use again!!!"
Nicholas V.
I am a solo practitioner, and manager of the Law Office of Nicholas J. Vail, PLLC, with offices in Denver, Colorado and Austin, Texas with a focus on general business and real estate contracts.
"Nicholas was great! Highly recommend and I will be using his services again."
John H.
John Daniel "J.D." Hawke is an experienced attorney with a law practice in Mobile, Alabama. He was born in Fairhope, Alabama and after earning his undergraduate degree at Auburn University, he received a law degree from Thomas Goode Jones School of Law in 2010. After law school, he formed the Law Office of J.D. Hawke LLC and over the last decade he has fought incredibly hard for each and everyone of his clients. His practice focuses on representing people facing criminal charges and clients dealing with family law matters. In addition to criminal defense and domestic relations cases, he also regularly handles contract disputes, personal injury cases, small business issues, landlord/tenant disputes, document drafting, and estate planning. He is licensed to practice law in the State of Alabama and the United States District Court for the Southern District of Alabama.
December 5, 2021
james a.
Mr. Allen is a seasoned trial and appellate attorney known for his precision, clarity, and results-driven legal writing. With experience handling everything from personal injury to family and criminal law — including service as an assistant public defender — he brings practical insight to every document he drafts. His passion for legal research and writing drives his work on persuasive, court-ready materials, including demand letters, service agreements, and independent contractor contracts. Mr. Allen understands the real-world impact of legal documents and balances legal strength with practical usability. Based in Alabama and licensed to practice law, he brings both legal insight and real-world judgment to every project he takes on.
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I am an attorney licensed in Alabama and have been in solo practice for 7 years. I have experience in Contracts drafting and review, Litigation and Immigration practice areas. I am available for new projects.
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Employment
Noncompete Agreement
Washington
Noncompete agreement termination options?
I recently left my job after signing a Noncompete Agreement. I am looking for a new job, but I am concerned about the restrictions in the Noncompete Agreement and how it might affect my ability to find a new job. I am looking for advice on my options for terminating or modifying the Noncompete Agreement so that I can find a new job without having to worry about any potential legal repercussions.
Merry K.
I am a WA State employment attorney. If you didn’t receive anything in return for signing the non-compete, it may be relatively easy to get out of it. If, however, you signed in return for something, such as a severance package, it will be challenging to get out of the agreement. However, many non-compete agreements are written overly broadly and may not be enforceable under the laws of WA and other states. You may want to consult with a WA State employment attorney for a review of the documents and law(s) of the state(s) where you may want to work or set up a business. (A WA State attorney can only provide legal advice in WA, but can help you find applicable law/case decisions for other states but without providing anything beyond information, much like a law librarian).
Business Contracts
Noncompete Agreement
Florida
Noncompete agreement for consultants?
I am a consultant who is looking to take on a new client, but the client requires me to sign a Noncompete Agreement. I want to make sure that I am not signing away my rights, and that the agreement is fair and reasonable. I am also interested in understanding how this agreement would affect my ability to work with other clients.
Venus C.
Hello. I appreciate your concerns about signing a Noncompete Agreement. It's essential to protect your rights and ensure the agreement is fair and reasonable given that a noncompete typically restricts competing activities during or after the term of engagement. Without knowing more about the business relationship and reviewing the actual terms, whether the non-compete is fair, reasonable, or even enforceable remains an open-ended question. Bearing this in mind, if the noncompete is preventing you from taking on other clients during or after the end of your relationship (or both), the scope of this restriction must be reasonable in terms of time, geographic area, and the specific activities it seeks to prevent. For example, does the noncompete specify the types of clients, industries, or geographic areas that are off-limits? What is the duration of the noncompete? If the client breaches your main agreement, will that render your noncompete void and unenforceable? These are just a few general questions that require a thorough review and analysis against Florida non-compete laws. Overall, the ultimate goal is to carefully review the terms to understand how they might impact your ability to take on new clients. If you don’t understand or are unsure about the contractual terms and their legal implications, it's highly recommended you consult with an attorney who can review the noncompete and provide you with personalized legal advice before you sign.
Employment
Noncompete Agreement
New Jersey
Can I work for a competitor with my current noncompete?
I have ended my non competent consulting agreement with my current employee and I have an offer to work as an employer “not as consultant” with a competitor company to my privious employees so can I work as an employee without any problem? The consultant agreement says the following: Under any circumstances the consultant shall not engage directly or indirectly either as a principal agent , consultant,stock holder , partner or in any other capacity whatsoever have any other relationship with any business which compete with the company in USA.
Jane C.
I suggest that you have an attorney review the entire agreement. It is hard to comment reading a paragraph taken out of context. From the limited facts you present, it seems that you cannot accept this job offer without violating the terms of the non-compete. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.
Employee Rights
Noncompete Agreement
New York
Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?
I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?
Damien B.
Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.
Employment
Noncompete Agreement
New York
Noncompete agreement and industry restrictions?
I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.
Danielle G.
In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.
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