Non-compete agreements - Alabama

Summary of differences between federal and state regulations

The state of Alabama code makes it illegal to restrict anyone from practicing a lawful profession, except for the provisions noted in the code.

State

Contact

Alabama Department of Insurance

Regulations

Alabama Code § 8-1-1 Contracts Restraining Business Void

Contracts restraining business void; exceptions.

(a) Every contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind otherwise than is provided by this section is to that extent void.

(b) One who sells the good will of a business may agree with the buyer and one who is employed as an agent, servant or employee may agree with his employer to refrain from carrying on or engaging in a similar business and from soliciting old customers of such employer within a specified county, city, or part thereof so long as the buyer, or any person deriving title to the good will from him, or employer carries on a like business therein.

(c) Upon or in anticipation of a dissolution of the partnership, partners may agree that none of them will carry on a similar business within the same county, city or town, or within a specified part thereof, where the partnership business has been transacted.

(Code 1923, §§6826, 6827, 6828; Acts 1931, No. 546, p. 647; Code 1940, T. 9, §§22, 23, 24.)

Federal

Contact

Department of Labor

Regulations

None.