Alabama Employee Agreement with Covenant not to Compete
Description
How to fill out Employee Agreement With Covenant Not To Compete?
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FAQ
Covenants not to compete are frequently enforced to prevent a former employee from soliciting his or her former customers to buy competing products or services from the new employer.
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.
California law bars covenants not to compete in nearly all circumstances.
The agreement is not enforceable because the time period it covers is too long. The period considered reasonable varies by state but typically ranges from 6 months to two years. Longer agreements will likely be found invalid. The territory covered by the agreement is too large.
Specificity: A non-compete agreement must be specific about the activities it prohibits. Additionally, the covenant must clearly articulate what activities are considered competing and those activities must be substantially similar or related to the work the employee performed for the employer.
In California, it's illegal to enforce non-compete agreements that put limits on an employee's future job prospects. ing to California Business and Professions Code Section 16600, any contract that restricts an individual from ?engaging in a lawful profession, trade, or business? is null and void.