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Total Articles: 2

Alabama's New Non-Compete Statute Places New Restrictions on Employers

Executive Summary: Effective January 1, 2016, Alabama passed a new non-compete and non-solicitation statute, repealing § 8-1-1 of the Alabama Code (the "New Act"). The New Act attempts to codify principles the Alabama courts have previously addressed.

Striking a Balance: Alabama’s Newly-Amended Restrictive Covenant Statute

When Alabama Governor Robert Bentley signed House Bill 352 into law on June 11, 2015, he repealed Alabama’s bare bones restrictive covenant statute and replaced it with a detailed codification of much of Alabama’s restrictive covenant case law. The new statute, which will become effective on January 1, 2016, will make it much easier for the uninitiated to understand Alabama’s restrictive covenant enforcement standards. The law largely reflects Alabama’s friendly attitude towards restrictive covenants, but it also tightens enforcement standards in several areas and makes some significant changes to Alabama law, including shortening the nonsolicitation agreement period and the restrictive covenant time period for business owners who sell business goodwill.
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