Alabama Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what Alabama requires; the download is our standard non-compete template, to be scoped to Alabama's rules below.
Alabama non-compete rules at a glance
| Enforceability | Enforceable under the 2016 statute (Ala. Code §8-1-190 et seq.) if protecting a listed interest. |
|---|---|
| Protected workers / thresholds | Professionals (as defined by case law) are exempt; others covered |
| Required formalities | Must be in writing, signed by both parties; 2 years presumed reasonable for employees |
| Overbroad agreements | Courts may void only the offending portion (partial enforcement permitted) |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How Alabama handles non-compete agreements
Alabama's statute presumes two years reasonable and lists the protectable interests by name — trade secrets, confidential information, customer relationships, specialized training — so tying the clause to a listed interest is the whole game. The practical drafting rule for Alabama: enforceable under the 2016 statute (Ala. Code §8-1-190 et seq.) if protecting a listed interest.. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
Alabama non-compete agreement FAQs
Are non-compete agreements enforceable in Alabama?
Enforceable under the 2016 statute (Ala. Code §8-1-190 et seq.) if protecting a listed interest. Coverage limits matter here: professionals (as defined by case law) are exempt; others covered.
What happens to an overbroad non-compete in Alabama?
Courts may void only the offending portion (partial enforcement permitted) Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a Alabama non-compete require?
Must be in writing, signed by both parties; 2 years presumed reasonable for employees Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in Alabama?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in Alabama or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.