When Alabama Governor Robert Bentley signed House Bill 352 into law on June 11, 2015, he repealed Alabama’s bare bones restrictive covenant statute and replaced it with a detailed codification of much of Alabama’s restrictive covenant case law.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.
Home > State Law Articles > Alabama > Restrictive Covenants (AL) > Striking a Balance: Alabama’s Newly-Amended Restrictive Covenant Statute