Childersburg Non-Compete Agreement
What Is A Covenant Not To Compete In Alabama?
Generally, a covenant not to compete is when a Alabama employee agrees not to work for an employer's competitors when the employee leaves the company. Covenants not to compete are also known as "non-compete clauses". An employee who signs a covenant not to compete can receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.
When are Covenants not to Compete Unenforceable?
Foreseeing whether or not a judge will uphold a covenant not to compete is generally difficult. Even though the interests of an employer are significant, Alabama courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an unusually long period of time or if they cover an unreasonably large geographic area around Childersburg.
Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer?s industry. Finally, the employer needs to have an acceptable business purpose which justifies their motives in requiring their employee to sign a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before you sign any documents that could restrict your rights, you may consider hiring a Childersburg, Alabama attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. A lawyer can also render useful advice for employers who are contemplating suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.