Updated December 13, 2022
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)
Table of Contents |
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 EmployeesÂ
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?
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
Download: Adobe PDF, MS Word, OpenDocument
Alabama Non-Disclosure Agreement
Download: Adobe PDF, MS Word, OpenDocument