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Exceptions for professional firms

Professional firms may not enter into non-compete agreements with their workers/members/partners.

A. “Subsection (a) [of § 8-1-1] provides the general prohibition of covenants not to compete and expressly applies to professionals. Subsections (b) and (c) provide limited exceptions to the general prohibition in subsection (a). However, these exceptions do not apply to professionals.” Cherry, Bekaert & Holland v. Brown, 582 So.2d 502 (1991).

B. Agreements will be reformed, if necessary. “It is clear from the wording of the statute itself and from the holdings of this Court that under § 8-1-1(a) a noncompetition contract provision is only “void” only to “that extent” prohibited by § 8-1-1(a).” Pierce v. Hand, Arendall, Bedsole, Greaves & Johnston, 678 So.2d 765 (Ala. 1996).

[This is only a summary of a few cases. This is presented for informational purposes only. Contact a lawyer for an assessment of your situation.]

This entry was posted by Edward at 12:00 PM, 30 September 2006 | Categories: Non-competition

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