Alabama’s New Non-compete and Non-solicitation Law Effective January 2016

Effective January 1, 2016, Alabama will have a new non-compete and non-solicitation law.  Non-compete and non-solicitation agreements are used throughout the construction industry, particularly with owners, salespeople, and upper management. Non-compete and non-solicitation agreements restrict the ability of a former employee to compete against his or her former employer following termination of employment and are necessary to protect a company’s customer base and trade secrets and to prevent former employees from converting its former employer’s customers if they start another company or go to work for a competitor. One of our Labor & Employment shareholders Wes Redmond published an article detailing the new and more restrictive provisions found in this new Act.