Non-competition agreements are contracts between employers and employees (or sometimes between former partners) that the employee will not compete with the employer after the employment ends. Because these agreements restrain the freedom of the employee to seek other work, Alabama law restricts the use of these agreements. Suits under non-compete agreements are usually brought against the former employee and the new employer. Courts will review such agreements for reasonableness of the time and region covered by the non-competition agreement.
For more information on non-competition agreements, please see the following:
The general rule on non-compete agreements
Exception for professional firms
What is a protectible interest?
What is a reasonable restriction as to time and place?
When do restrictions pose an undue hardship on the worker?
Rules for preliminary injuctions
Does the non-compete agreement continue if the company is sold?
Alabama law also provides protection against the misuse of a company's trade secrets by its former employees or competitors. Companies sometimes bring claims under the Trade Secrets Act when the employee has not signed a non-competition agreement or a court has held the agreement invalid.
I will be happy to discuss non-competition agreements or trade secrets problems with
* companies wishing to use them
* companies hiring employees who are subject to such agreements,or
* employees who are subject to them.
For more information about non-competition agreements, please go my Employee Rights and Information Center. (Since the law varies from state to state on non-compete agreements, the general discussion in the Employee Rights and Information Center may not be useful as to Alabama law.)
My employment law cases are on the Case List page. The Case List page does not list many case which were settled or on which a judge did not write an opinion.