Are Non-Competes Enforceable in Alabama?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable — statute sets rules
Enforceable if reasonable; 2 years presumed reasonable
Alabama voids contracts that restrain a lawful trade except those its statute allows to protect a 'protectable interest' as defined in section 8-1-191 (trade secrets, for example). An employee may agree not to compete within a specified area while the employer carries on a like business there; restraints of two years or less are presumed reasonable. Customer non-solicits of 18 months (or as long as post-separation pay continues) are presumed reasonable. Existing professional exemptions under Alabama law are preserved.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
Alabama enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- Alabama: Enforceable if reasonable; 2 years presumed reasonable. Ala. Code 8-1-190 (void contracts; allowed restraints)
- Duration: 2 years or less presumed reasonable for employee non-competes (1 year for sale-of-business covenants). Ala. Code 8-1-190 (void contracts; allowed restraints)
Other Alabama rules to check
- Non-solicitation clauses: Customer non-solicitation restraints of 18 months, or as long as post-separation consideration is paid (whichever is greater), are presumed reasonable.
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Alabama non-compete rules
- Statute
- Ala. Code 8-1-190 (void contracts; allowed restraints)Ala. Code 8-1-190 to 8-1-197 (Restrictive Covenants article)
- Duration
- 2 years or less presumed reasonable for employee non-competes (1 year for sale-of-business covenants)
- Non-solicitation
- Customer non-solicitation restraints of 18 months, or as long as post-separation consideration is paid (whichever is greater), are presumed reasonable.
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
Profession-specific rules
- LimitedSection 8-1-196 preserves every professional exemption recognized by Alabama law (courts have long refused to bind learned professionals such as physicians, lawyers and accountants). Ala. Code 8-1-196
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Alabama?
Enforceable if reasonable; 2 years presumed reasonable. Alabama voids contracts that restrain a lawful trade except those its statute allows to protect a 'protectable interest' as defined in section 8-1-191 (trade secrets, for example). An employee may agree not to compete within a specified area while the employer carries on a like business there; restraints of two years or less are presumed reasonable. Customer non-solicits of 18 months (or as long as post-separation pay continues) are presumed reasonable. Existing professional exemptions under Alabama law are preserved.
How long can a non-compete last in Alabama?
2 years or less presumed reasonable for employee non-competes (1 year for sale-of-business covenants)
Did the FTC ban non-competes in Alabama?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable — statute sets rules): Arkansas, Florida, Georgia, Hawaii, Idaho, Louisiana, Michigan, North Carolina
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Alabama? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Alabama.