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Non-Compete Laws in Alabama

Alabama enforces employee non-competes by statute if they are reasonable in time and place, and presumes a restraint of two years or less to be reasonable.

Last checked . General information, not legal advice.

Alabama at a glance

Status
Enforceable if reasonable (statute)
Ala. Code 8-1-190 voids restraints of trade but allows employee non-competes limited to a specified area, subject to reasonable time and place limits.
Enforceable against employees
Yes, if reasonable
Restraints of two years or less are presumed reasonable; customer non-solicits are presumed reasonable for 18 months or as long as post-separation pay continues, if longer.
Advance notice required
No
Section 8-1-190 contains no advance notice rule.

Sources

Last checked

The rules in Alabama

Are employee non-compete agreements banned, restricted or enforceable in Alabama?

Status in Alabama: Enforceable if reasonable (statute). Ala. Code 8-1-190 voids restraints of trade but allows employee non-competes limited to a specified area, subject to reasonable time and place limits.

Can an employer enforce a non-compete against an employee in Alabama?

Yes, if reasonable. Enforceable against employees in Alabama: yes, if reasonable. Restraints of two years or less are presumed reasonable; customer non-solicits are presumed reasonable for 18 months or as long as post-separation pay continues, if longer.

Does Alabama require employers to give advance notice of a non-compete?

No. Advance notice required in Alabama: no. Section 8-1-190 contains no advance notice rule.

Where do the Alabama non-compete laws come from?

The rules above come from Ala. Code 8-1-190. Each source is linked on this page. We last checked them in October 2026.

Good to know

The current statute was enacted by Act 2015-465.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.