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Alabama Non-Solicitation Agreement

Alabama Non-Solicitation Agreement

Updated February 01, 2024

An Alabama non-solicitation agreement is a contract between an employee and a company that forbids an employee from acquiring and using a company’s clients, customers, employees, and contractors for their own benefit. Presented as a standalone agreement or as part of an all-encompassing employment contract, it lays out specific terms to protect the employer’s business and human resources.

Is It Legally Enforceable in Alabama?

Yes. A non-solicitation agreement is enforceable in Alabama if the contract is “preserving a protectable interest.” (Section 8-1-190, Section 8-1-191)

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What Types of Solicitation Can Be Prohibited?

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:

  • Former or Current Employees 

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.

  • Former or Current Customers

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 Should Be Included in the Agreement?

What should you include in a non-solicitation agreement.

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.

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