Alabama Non-Compete Laws (2026): Are Non-Competes Enforceable?

Alabama allows employee non-competes, but only in the forms its statute lists. Ala. Code § 8-1-190(a) makes void, to that extent, every contract that restrains anyone "from exercising a lawful profession, trade, or business of any kind otherwise than is provided by this section." Subsection (b) then permits an employee's agreement not to carry on a similar business within a specified geographic area for a reasonable time, and it presumes a restraint of two years or less to be reasonable.

The agreement must also be in writing, signed by all parties, and supported by adequate consideration (Ala. Code § 8-1-192). Alabama's statute sets no salary threshold, and we found no profession-specific non-compete statute. For how other states handle these agreements, see our non-compete laws by state guide.

Information last verified on 2026-10-08. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Alabama's restrictive-covenant statute, Ala. Code §§ 8-1-190 to 8-1-197 (Article 11 of Chapter 1 of Title 8), as it applies to employees, plus a short note on the federal FTC rule. It does not cover trade-secret claims (see Alabama trade secret laws), severance agreements (see Alabama severance pay laws), or the professional-conduct rules for lawyers.

Are non-competes enforceable in Alabama?

They can be, if they fit one of the statute's exceptions. Alabama starts from a rule of invalidity. Ala. Code § 8-1-190(a) provides:

"Every contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind otherwise than is provided by this section is to that extent void." Ala. Code § 8-1-190(a)

Section 8-1-190(b) then lists the restraints the law allows, each to preserve a protectable interest. For employees, the important one is subsection (b)(4): an employee or agent may agree with the employer not to carry on a similar business within a specified geographic area, for a reasonable time and place, where the employer carries on a like business there. The statute adds: "Restraints of two years or less are presumed to be reasonable."

A presumption is a starting point, not a guarantee. A covenant inside the two-year window can still be challenged, and one longer than two years simply does not get the benefit of the presumption.

Restraints Alabama law allows

Section 8-1-190(b) lists these categories. Each is allowed only to preserve a protectable interest.

Subsection (b) also allows exclusive-dealing agreements between businesses. Those are not employee covenants and are outside this page.

What interests an employer can protect

A restraint is allowed only to preserve a protectable interest, and Ala. Code § 8-1-191 says what counts. Under that section, confidential information and trade secrets are protectable interests, and "Job skills in and of themselves, without more, are not protectable interests." Training can be a protectable interest only if it is specifically set forth in writing as the consideration for the restraint (§ 8-1-191(a)(5)).

Alabama defines trade secrets separately, in Ala. Code § 8-27-2.

Writing, signature and consideration

Ala. Code § 8-1-192 sets three formal requirements. The current code text reads:

"In order to be valid, any contract or agreement executed pursuant to this article shall be reduced to writing, signed by all parties, and be supported by adequate consideration." Ala. Code § 8-1-192

Our research did not identify an Alabama decision on what counts as "adequate consideration," including whether continued employment alone meets it. Article 11 contains no advance-notice rule, no requirement to advise the employee to see a lawyer, and no garden-leave pay requirement; the only time periods it sets are the presumed-reasonable periods in § 8-1-190(b).

Who has to prove what

Under Ala. Code § 8-1-194, the burden falls mainly on the employer. The section reads: "The party seeking enforcement of the covenant has the burden of proof on every element. The party resisting enforcement of the covenant has the burden of proving the existence of undue hardship, if raised as a defense."

So an employer suing to enforce a covenant must prove each element, while an employee who argues that enforcement would cause undue hardship must prove that hardship.

What a court can do with an overbroad non-compete

Alabama gives courts two options, both permissive. Ala. Code § 8-1-193 provides: "If a contractually specified restraint is overly broad or unreasonable in its duration, a court may void the restraint in part and reform it to preserve the protectable interest or interests. If a contractually specified restraint does not fall within the limited exceptions set out in subsection (b) of Section 8-1-190, a court may void the restraint in its entirety."

In practice, a covenant that is overly broad or lasts too long may be cut back and enforced as reformed, and a restraint that fits none of the § 8-1-190(b) categories may be thrown out entirely. The word "may" leaves the choice to the court.

If you are fired or laid off

Alabama's statute does not treat employees who are fired or laid off differently from those who quit; none of §§ 8-1-190 to 8-1-197 draws that distinction. The one link to what happens after separation is in the customer non-solicit exception: under § 8-1-190(b)(5), the presumption of reasonableness runs for 18 months or for as long as the employer pays post-separation consideration, whichever is greater.

How a court weighs a firing in a particular case is a separate question that our research did not cover. For how at-will employment works in the state, see Alabama at-will employment laws.

Physicians and other professionals

Ala. Code § 8-1-196 states: "Nothing in this article shall be construed to eliminate any professional exemption recognized by Alabama law." The statute itself does not list any profession. The exemption it preserves comes from case law: in Odess v. Taylor, 282 Ala. 389, 211 So. 2d 805 (1968), the Alabama Supreme Court held that the former statute's exception for employees did not apply to covenants restraining the practice of a profession, so a physician's covenant not to practice was void. We did not locate an Alabama appellate decision applying that rule under the current article, and which other occupations count as professions is decided case by case.

We also found no Alabama statute aimed specifically at health-care non-competes. A search of the short titles of 2025 and 2026 Regular Session bills on the legislature's ALISON system, using terms such as physician, medical, dental and veterinary, turned up none addressing restrictive covenants. A title search can miss a bill, so treat that as a search result rather than a confirmed negative.

Out-of-state choice-of-law and forum clauses

Ala. Code § 8-1-197 says the article "shall govern and shall be applied instead of any foreign laws that might otherwise be applicable in those instances when the application of those foreign laws would violate a fundamental public policy expressed in this article."

A forum clause is a different question. In Ex parte PT Solutions Holdings, LLC, 225 So. 3d 37 (Ala. 2016), the Alabama Supreme Court enforced a clause in a physical therapist's noncompetition agreement that sent disputes to Georgia. The court reasoned that the argument that the noncompete as a whole violated Alabama public policy went to the contract, not to the forum-selection clause itself. That agreement was signed December 31, 2014, and the court did not decide whether the noncompete was enforceable.

Whether § 8-1-197 changes that result for agreements signed later was not decided in PT Solutions, and our research did not locate an Alabama appellate decision on it.

What an employer can recover

Under Ala. Code § 8-1-195, the remedies for breach of an agreement governed by the article are injunctive and other equitable relief for an actual or threatened breach; the actual damages suffered, or lawful liquidated damages if the contract provides for them; and any remedies available in contract law, "including attorneys' fees or costs, if provided for in the contract or otherwise provided for by law."

We found no penalty, fee-shifting right or notice duty in the article that runs in the employee's favor, and we did not identify a state agency that handles non-compete complaints. Disputes go to the courts.

Customer non-solicits and confidentiality

A covenant not to solicit current customers is its own category under § 8-1-190(b)(5), with the 18-month presumption described above. Confidentiality obligations connect to § 8-1-191, which treats confidential information and trade secrets as protectable interests.

Recent changes and pending bills

Alabama's current statute comes from Act 2015-465, which replaced the former § 8-1-1 with Article 11. In PT Solutions, the Alabama Supreme Court noted in footnote 3 that §§ 8-1-196 and 8-1-197 were added by that act, effective January 1, 2016. The history notes on the legislature's site for §§ 8-1-190, 8-1-192 and 8-1-197 cite only Act 2015-465, so no later amendment appears. Some older web sources still describe the pre-2016 rule under former § 8-1-1.

We found no non-compete or restrictive-covenant bill in Alabama's 2025 or 2026 Regular Sessions. That rests on a search of bill short titles on ALISON, which can miss a bill whose title does not mention the subject. Bills for the 2027 session were not checked.

The FTC rule and Alabama non-competes

The FTC's nationwide non-compete rule never took effect. A federal court in Texas set it aside on August 20, 2024 (Ryan, LLC v. FTC, No. 3:24-CV-00986-E, N.D. Tex.), the FTC voted on September 5, 2025 to dismiss its appeals, and the FTC removed the rule from the Code of Federal Regulations on February 12, 2026. The FTC still acts case by case; on June 22, 2026 it approved a final order requiring a pest-control company to stop enforcing non-competes. More detail: FTC non-compete ban struck down and our non-compete laws by state guide.

Non-competes and trade secrets

A non-compete is a contract term; trade-secret protection is a separate body of law that does not depend on one. See Alabama trade secret laws.

Questions this page does not answer yet

Our research did not verify Alabama rules on these points, so this page states no rule on them:

• which occupations besides physicians count as professions under the case-law exemption § 8-1-196 preserves, and how that exemption applies under the current article;
• whether continued employment is adequate consideration under § 8-1-192;
• how Alabama appellate courts have applied § 8-1-190 to employee covenants since 2016.

If you have been asked to sign

Under Alabama's statute, the questions are whether the covenant fits a § 8-1-190(b) category, whether it protects an interest § 8-1-191 recognizes, whether it meets the § 8-1-192 formalities, and how its length and territory compare with the presumed-reasonable periods. A lawyer licensed in Alabama can review a specific agreement against those points.

Related

• Non-compete laws by state
• Alabama trade secret laws
• Alabama severance pay laws
• Alabama at-will employment laws
• FTC non-compete ban struck down

Disclaimer: This article provides general legal information about Alabama non-compete law under Ala. Code §§ 8-1-190 to 8-1-197, not legal advice. The information was last verified on 2026-10-08. Alabama non-compete disputes are decided by the courts; for advice about a specific agreement, contact a legal aid office or a lawyer licensed in Alabama.

Last updated: 2026-10-08.

Frequently Asked Questions

Are non-competes enforceable in Alabama?

They can be. Ala. Code § 8-1-190(a) voids restraints on a lawful trade or business except as the section allows, and § 8-1-190(b)(4) allows an employee non-compete within a specified geographic area for a reasonable time.

How long can a non-compete last in Alabama?

The statute sets no fixed maximum, but under Ala. Code § 8-1-190(b)(4) an employee non-compete of two years or less is presumed reasonable. A longer restraint does not get that presumption.

Does an Alabama non-compete have to be in writing?

Yes. Ala. Code § 8-1-192 requires the agreement to be reduced to writing, signed by all parties and supported by adequate consideration.

Can an Alabama court rewrite an overbroad non-compete?

It may. Under Ala. Code § 8-1-193, a court may void an overly broad restraint in part and reform it, or void entirely a restraint that does not fit the § 8-1-190(b) exceptions.

Is there a salary threshold for non-competes in Alabama?

No. None of the sections in Ala. Code §§ 8-1-190 to 8-1-197 sets an income, wage or exempt-status threshold.

Does a non-compete still apply in Alabama if I was fired?

The statute makes no exception for it. Ala. Code §§ 8-1-190 to 8-1-197 do not treat employees who are fired or laid off differently from those who quit.

How long can an Alabama non-solicitation agreement last?

Under Ala. Code § 8-1-190(b)(5), a covenant not to solicit current customers is presumed reasonable for 18 months, or for as long as post-separation consideration is paid, whichever is greater.

Are doctors' non-competes banned in Alabama?

No statute names physicians, but in Odess v. Taylor (Ala. 1968) the Alabama Supreme Court held covenants restraining the practice of a profession, there a physician's, void, and Ala. Code § 8-1-196 preserves any professional exemption recognized by Alabama law. We did not locate a decision applying it under the current statute.

Does the FTC non-compete ban apply in Alabama?

No. A federal court set the FTC rule aside on August 20, 2024, and the FTC removed it from the Code of Federal Regulations on February 12, 2026.