Employment Law
Are non-compete agreements enforceable in Alabama?
Yes, if reasonably drafted. Ala. Code § 8-1-190 permits non-competes that protect a legitimate business interest, are reasonable in time, geography, and scope, and are accompanied by adequate consideration. Many off-the-shelf non-competes are over-drafted and partially unenforceable.
Alabama enforces reasonable post-employment non-competes under Ala. Code § 8-1-190. The statutory framework requires four elements: (1) a protectable interest (trade secrets, customer relationships, training investment), (2) reasonable time (typically two years or less is presumptively reasonable), (3) reasonable geographic scope, and (4) adequate consideration.
What makes a covenant enforceable.
The covenant must protect a legitimate interest — purely punitive restrictions are unenforceable. Reasonableness is fact-intensive: a 50-mile geographic radius makes sense for a regional sales rep, less so for a national executive. Two-year duration is typical and often defensible; longer durations face heavier scrutiny.
Reformation.
Alabama courts can reform over-broad covenants to make them enforceable — narrowing geography, shortening duration, scaling back scope. The court does not have to do this; many courts will simply strike an unenforceable covenant in full.
Common defenses.
- No protectable interest (purely competitive restriction).
- Unreasonable in time, geography, or scope.
- No adequate consideration (especially for restrictions imposed on existing employees without new benefit).
- Prior material breach by employer (failure to pay bonus, change in role).
We litigate both enforcement and defense. See our employment-law practice and the Alabama vs Florida non-compete comparison.