Occupation limits
Alabama Non-Compete Law (2026): Enforceable if reasonable
Alabama voids restraints on trade by default, then carves out six categories of covenant that survive if they guard a genuine business interest and stay proportionate. Duration is where the statute is most concrete, attaching a graduated presumption of reasonableness depending on what the covenant restricts. Separately, workers Alabama courts classify as professionals cannot be bound by a non-compete at all.
The rule
How Alabama treats non-compete agreements
The professional exemption is a total defense, not a discount, but courts have read it narrowly and have refused to extend it to exterminators, seasonal tax preparers, and securities brokers. Section 8-1-196 preserves the exemption without defining it, so the fight is always over the Friddle factors.
If you are an employer
Draft to the presumptions the statute already hands you, and screen the role first, because a covenant signed by someone a court later calls a professional is worth nothing.
If you are a worker
Ask whether your occupation is licensed and judgment-driven enough to fall inside Alabama's professional exemption, since that argument defeats the covenant outright rather than merely trimming it.
| Classification | Codified reasonableness with tiered duration presumptions |
|---|---|
| Pay threshold | No pay threshold |
| Maximum term | No hard ceiling. Employee non-competes running 2 years or less are presumed reasonable; customer non-solicitation covenants get an 18-month presumption; covenants tied to the sale of business goodwill get 1 year. Anything longer has to be justified. |
| Notice or consideration | Nothing in the statute obliges an employer to give advance notice. The covenant does have to be ancillary to a protectable interest and supported by consideration. |
| Primary statute | Ala. Code §§ 8-1-190 through 8-1-197 (professional exemption preserved at § 8-1-196) |
Detail
What has changed, and what is still moving
Legislation 2024–2026
Quiet since Act 2015-465 rewrote the framework effective January 1, 2016. Nothing was enacted in the 2024, 2025, or 2026 regular sessions.
Bills to watch
No significant restrictive bills pending
Leading cases
The professional exemption is entirely case-built: Friddle v. Raymond (Ala. 1991) supplies the three-part test, and Benchmark Medical Holdings v. Barnes (Ala. 2004) extended it to physical therapists. Earlier decisions cover ENT physicians (Oddess v. Taylor, 1968), ophthalmologists (Salisbury v. Semple, 1990), attorneys (Pierce v. Hand Arendall, 1996), veterinarians, and accountants.
If you have one in hand
What can make a non-compete unenforceable in Alabama
- Your occupation is carved out. Codified reasonableness with tiered duration presumptions
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Alabama.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Alabama non-compete questions
Are non-compete agreements enforceable in Alabama?
Alabama voids restraints on trade by default, then carves out six categories of covenant that survive if they guard a genuine business interest and stay proportionate. Duration is where the statute is most concrete, attaching a graduated presumption of reasonableness depending on what the covenant restricts. Separately, workers Alabama courts classify as professionals cannot be bound by a non-compete at all.
How long can a non-compete last in Alabama?
No hard ceiling. Employee non-competes running 2 years or less are presumed reasonable; customer non-solicitation covenants get an 18-month presumption; covenants tied to the sale of business goodwill get 1 year. Anything longer has to be justified.
Is there a minimum salary for non-competes in Alabama?
No. Alabama sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Alabama require?
Nothing in the statute obliges an employer to give advance notice. The covenant does have to be ancillary to a protectable interest and supported by consideration.
Sources
How this entry was checked
- Primary source. Ala. Code §§ 8-1-190 through 8-1-197 (professional exemption preserved at § 8-1-196) — the statutory text itself.
- Secondary sources consulted. Ala. Code Title 8, ch. 1, art. 10 (Justia), Act 2015-465, Wallace Jordan client alert, Foley & Lardner 2026 federal-state overview.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.