Alabama Post-Employment Restrictions on Competition

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US-TS8041
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Description

This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.

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FAQ

The more active and valuable an employee, the more dangerous that employee may be if working for a competitor. Nevertheless, California law severely restricts the ability of a company or the ability of a contract to limit the right of an exemployee to compete.

The non-disclosure agreement legally prevents an individual from disclosing vital information obtained while in the employment of the company, thereby deterring other companies from hiring them solely for that benefit.

Alabama's restrictive covenant law (including non-competes and non-solicitation) can be found in Alabama Code §§ 8-1-190 through 8-1-190 through 8-1-197. In Alabama, non-competes and non-solicitation agreements are void unless the agreement satisfies certain exceptions in the law.

The goal of any non-compete agreement is to protect trade secrets. If you can show that your former role did not require you to access trade secrets, you should be able to accept employment with any company.

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.

Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia, and Washington prohibit non-compete agreements unless the employee earns above a certain salary threshold. Other states, like Iowa and Kentucky, limit the use of non-competes for certain professions such as healthcare workers.

compete clause is a contractual term between an employer and a worker that blocks the worker from working for a competing employer, or starting a competing business, typically within a certain geographic area and period of time after the worker's employment ends.

Under California Business and Professions Code Section 16600, unless you were an owner of the business, any ?non-compete clause? which forbids an employees who is fired or resigns from working for a competitor or starting a competing business is illegal and unenforceable.

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Alabama Post-Employment Restrictions on Competition