Is It Legally Enforceable in Alabama?
Yes. A non-solicitation agreement is enforceable in Alabama if the contract is “preserving a protectable interest.”[1][2]
Types of Solicitation to Prohibit
A non-solicitation agreement is customizable to the employer’s needs as long as it can be considered reasonable as a means to protect its business interests without being overly detrimental to the employee’s livelihood.
It can prohibit the employee from soliciting the following parties after termination of employment:
The individual is prohibited from engaging with any former or current employees, contractors, affiliates, and similar parties of the employer under which a business relationship has been created.
The individual is prohibited from engaging with any former or current customers, clients, and similar parties of the employer under which a business relationship has been created.
What to Include
A non-solicitation agreement must specify the following limitations:
1. Time Restraint
In Alabama, a non-solicitation covenant is generally considered reasonable for a period of 18 months after termination of employment.
2. Geographical Restraint
This limits the terms of the non-solicitation agreement to apply to only a specific area or location.
3. Specific Action
The agreement must specify exactly what the individual is restricted from doing as part of the agreement.
Related Forms
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Alabama Non-Disclosure Agreement
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