Alabama Employee Restrictive Covenants

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Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.

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FAQ

The other types of restrictive covenants found in employment contracts are non-disparagement, non-interference and non-solicitation.

When a party enters into a restrictive covenant, he/she agrees to refrain from doing something or from using a property in a certain way that is restricted by the contract. For example, when purchasing real estate, the buyer may agree to use the property for the designated purpose only and not for other purposes.

You and your coworkers have the right to meet and discuss workplace issues, including whether or not to be represented by a union. Employers cannot threaten, discriminate against, or otherwise take action against you for organizing or talking with your coworkers about working conditions.

Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...

In other words, the general rule followed in Alabama is that restrictive covenants in non-compete agreements that prevent a legal business, trade, or profession from carrying out business are not enforceable. There are exceptions to this general rule.

Restrictive covenants can generally be found in one of three forms: non-disclosure, non-solicitation, and non-compete clauses. Sometimes their usage is a reasonable attempt to ensure the success of the business.

The most common types of post-employment restrictive covenants include non-competition clauses and restrictions prohibiting the solicitation of customers/ clients and employees, each of which are in effect both during the employment relationship and for defined period thereafter (e.g. six months).

Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...

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Alabama Employee Restrictive Covenants