The next state in our series exploring non-compete agreements is
Alabama. The Yellowhammer State has a fulsome history of litigation (resulting in many reported decisions) involving non-competes and other post-employment competitive restrictions. The legislature has recently revised its non-compete statute, codifying existing law in some areas, while making new law elsewhere. For this chapter, we’ll add the insights of my Birmingham, Alabama, partner John Goodman, who has for more than 30 years represented non-compete plaintiffs and defendants in Alabama courts (as well as the courts of more than a dozen other states).
Alabama’s non-compete law is similar to that of many other jurisdictions: Such agreements are void as against public policy[i] unless they satisfy one of several statutorily prescribed exceptions.[ii] The most commonly used of these exceptions are for agreements between employers and employees, agreements between employer and employee not to solicit from the