Alabama has a new restrictive covenant statute. A few weeks ago, Alabama Governor Bentley signed new legislation which will repeal the 1975 version of Alabama Code Section 8-1-1 titled “Contracts restraining business void; exceptions” and replace it with a new version effective January 1, 2016.
The new law stakes out the permissible scope and purpose of restrictive covenants such as non-compete and non-solicitation agreements. Unlike some other states with restrictive covenant statutes, Alabama’s new law codifies a middle-of-the-road approach to restrictive covenants. Essentially, it allows non-compete and non-solicitation clauses for many employees provided they contain reasonable restrictions. In explaining
Continue Reading A Dash of Certainty – Alabama’s New Restrictive Covenant Statute