Quick Facts — Noncompete Agreement Lawyers

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:

  1. Being overly broad in scope, duration or geographic area.
  2. Imposing undue hardship on the employee.
  3. Prohibiting competition with a former employer in a field unrelated to the employer's business.
  4. Unfairly limiting the employee's ability to make a living.
  5. 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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Asked on Aug 1, 2023

Noncompete agreement and change of control?

I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.

Thomas L.

Answered Aug 4, 2023

If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.

Read 1 attorney answer>

Employment

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Asked on Dec 12, 2023

Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?

I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?

Matthew S.

Answered Dec 16, 2023

No, this at worst is a civil matter and not a criminal matter. F

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Asked on Jun 3, 2023

Noncompete agreement and promotions?

I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.

Thomas L.

Answered Jun 16, 2023

It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.

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How to draft a noncompete agreement?

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Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

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Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?

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No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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