Also known as The New Act, Alabama's new non-compete law is more restrictive. For example, Alabama forbids commercial entities to use any type of agreement that limits a person or business's ability to hire essential personnel or another business’s commercial dealings with another essential partner such as a vendor or seller. In addition, non-compete agreements must be fair to the employee in both their time limits, scope, job skills, and geographic area. They must specifically "preserve a protectable interest," which includes protecting the good will of a business and customer list. It is generally presumed that the acceptable time limit according to Alabama code is around two years.
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Unlike other states, Alabama law is very strict regarding how non-compete agreements may be written in order to protect their enforceability. Because such agreements are important, you should first review the non-compete statute. Additionally, you should seek the services of a licensed attorney to ensure that your non-compete agreement complies with the new law, does not violate public policy, and whether Alabama courts are likely to uphold the agreement.