Are Non-Competes Enforceable in Alabama?

Most people sign a non-compete assuming it binds them. In Alabama, the law starts from the opposite position. Under Alabama Code Section 8-1-190(a), every contract by which anyone is restrained from exercising a lawful profession, trade, or business is void to that extent, unless it fits one of six exceptions the statute spells out.

That does not make every non-compete in Alabama worthless. It means the agreement has to earn its enforceability rather than be assumed to have it. The question is not whether your agreement looks official. It is whether the restriction lands inside one of those six exceptions, and whether it is reasonable in time, geography, and scope.

What Section 8-1-190 actually says

Alabama replaced its older restrictive covenant framework with Sections 8-1-190 through 8-1-197, which apply to contracts entered into on or after January 1, 2016. If your agreement predates that, it is analyzed under the prior law, so the date on the signature page is one of the first things worth checking.

Section 8-1-190(a) sets the default. Subsection (b) then lists the six contracts that are allowed, and it opens with a condition that decides most arguments: they are allowed to preserve a protectable interest.

What counts as a protectable interest?

Alabama does not leave this to argument. Section 8-1-191 sets out what qualifies, including trade secrets, commercial relationships with specific existing customers, clients, vendors or patients, the good will associated with an ongoing business, and specialized training that involved substantial expense directed at the employee.

One line in that section matters more than the rest for most people reading this: job skills alone are not a protectable interest. Being good at your work, and having become good at it while employed, is not something an employer is entitled to protect by keeping you out of the market.

The six exceptions

1. No-hire agreements between businesses, limited to employees who hold a position uniquely essential to the management, organization, or service of the business.
2. Agreements to limit commercial dealings to each other.
3. Sale of good will. A seller may agree not to carry on a similar business or solicit that business customers in a specified geographic area, so long as the buyer carries on a like business. One year or less is presumed reasonable.
4. Employee non-compete. An agent, servant, or employee of a commercial entity may agree not to engage in a similar business in a specified geographic area, so long as the entity carries on a like business, subject to reasonable restraints of time and place. Two years or less is presumed reasonable.
5. Non-solicitation. An employee may agree not to solicit current customers, subject to reasonable time restraints. 18 months, or as long as post-separation consideration is paid, whichever is greater, is presumed reasonable.
6. Dissolution. On or in anticipation of dissolving a business, the owners may agree none of them will carry on a similar activity in the area where the business operated.

Two details in that list get missed often. The employee exceptions in (4) and (5) apply to an agent, servant, or employee of a commercial entity. And (5) covers current customers, not everyone the business has ever served.

Presumed reasonable is not the same as a time limit

The statute does not cap how long a restriction may run. It creates presumptions. A two year employee non-compete starts out presumed reasonable. A three year one does not, which does not make it automatically void but does mean someone has to justify it.

The same logic runs through geography and scope. A restriction covering the counties where the business actually operates is a different proposition from one covering the entire Southeast, and a restriction on doing the specific work you did is different from one on working anywhere in the industry.

If you are a licensed professional, read this part twice

Section 8-1-190(a) voids restraints on a lawful profession, trade, or business. Alabama courts have long read the word profession to mean something specific, and have held that non-compete agreements are generally unenforceable against professionals. The doctrine has been applied to physicians, veterinarians, accountants, and licensed physical therapists, among others.

This is judicial interpretation of the word profession, not a separate carve-out written into the statute. That distinction matters, because it means the question for any given practitioner is whether the role qualifies, and that is argued rather than assumed.

Dentistry is the closer question. It is plainly a licensed profession and the argument by analogy is strong, but Alabama courts have not addressed it the way they have physicians and veterinarians. A dentist reviewing a restrictive covenant should treat the outcome as genuinely open rather than settled in either direction.

Whether a non-solicitation provision survives against a professional, even where a non-compete would not, is an area Alabama courts are still working out. So a physician who correctly concludes the non-compete is unenforceable may still be subject to the customer solicitation clause sitting two paragraphs below it.

Independent contractors are usually outside the exceptions

Both employee exceptions are written to cover an agent, servant, or employee of a commercial entity. A genuine independent contractor is usually not an employee or a servant, which is why non-competes against contractors are frequently unenforceable in Alabama. The word doing the most work in that list is agent, because depending on how the arrangement operates a contractor may still be acting as one.

The caveat is that the label in the contract does not decide it. Whether someone is genuinely an independent contractor depends on how the working relationship actually operates. A worker called a contractor who is supervised, scheduled, and equipped like an employee may well be an employee for this purpose.

The FTC did not ban non-competes

This comes up constantly, so it is worth being precise. The Federal Trade Commission adopted a rule that would have banned most non-competes nationwide. A federal court set it aside, the Commission dismissed its appeals in September 2025, and the rule was formally removed from the Code of Federal Regulations effective February 12, 2026.

The FTC has said it may still challenge individual non-competes case by case under its general authority. But there is no federal ban, and for anyone signing or enforcing an agreement in Alabama, state law governs. If you held off on reviewing an agreement because you expected the federal rule to solve it, that is no longer a reason to wait.

What a review actually looks at

A review of a restrictive covenant generally covers:

• Whether the restriction fits any exception in Section 8-1-190(b) at all
• What protectable interest the employer is actually asserting
• Whether the duration falls inside or outside the presumptions
• Whether the geography matches where the business genuinely operates
• Whether the non-solicitation and non-compete rise or fall together
• Whether the professional doctrine applies to your role
• Whether you are an employee or a contractor in substance
• What the rest of the agreement commits you to, including compensation, termination, notice, and any tail obligations

What this costs

It depends, and we will tell you what it depends on rather than hiding the ball. Four things drive the number: the length of the document, what is at stake if it goes wrong, whether you want negotiation or just understanding, and how fast you need it. We explain the expected scope and cost for your specific contract at the consultation, before any work begins. More on the contract review page.

Already signed one?

Still worth reviewing. An unenforceable restriction does not become enforceable because you agreed to it. We review existing agreements to explain what the restriction actually restricts, what your notice and termination obligations are, and what your options look like before you take a step that affects your rights. That holds whether you are weighing a competing offer, approaching a renewal, or a default notice has already arrived.

Frequently Asked Questions

Are non-compete agreements enforceable in Alabama?

Sometimes, but the starting point is the opposite of what most people assume. Alabama Code Section 8-1-190(a) says every contract by which anyone is restrained from exercising a lawful profession, trade, or business is void to that extent, unless it fits one of six exceptions listed in the statute. So a non-compete is void by default and enforceable only if it lands inside an exception and is reasonable. Whether yours does is a fact-specific question.

What law governs non-competes in Alabama?

Alabama Code Sections 8-1-190 through 8-1-197, the Restrictive Covenants article. Section 8-1-190 contains the general rule and the six exceptions. It replaced the older framework and applies to contracts entered into on or after January 1, 2016. Older agreements are analyzed under the prior law, which is one reason the date on your agreement matters.

How long can a non-compete last in Alabama?

The statute does not set a hard cap. It sets presumptions. For an employee non-compete under Section 8-1-190(b)(4), restraints of two years or less are presumed to be reasonable. For the sale of the good will of a business under Section 8-1-190(b)(3), restraints of one year or less are presumed reasonable. A longer restraint is not automatically void, but it loses the presumption and has to be defended.

Are non-competes enforceable against physicians in Alabama?

Often they are not. Section 8-1-190(a) voids restraints on a lawful profession, and Alabama courts have long read the word profession to cover licensed practitioners including physicians, veterinarians, accountants, and licensed physical therapists. Many physicians sign agreements assuming the non-compete binds them when Alabama law may say otherwise. The analysis still turns on the specific role and the specific agreement, so it is worth a review rather than an assumption in either direction.

Does the professional exemption cover dentists in Alabama?

That is less settled. Alabama courts have expressly applied the professional doctrine to physicians, veterinarians, accountants, and licensed physical therapists. Dentistry is a licensed profession and the argument by analogy is a strong one, but it is an argument rather than a decided question. A dentist reviewing a restrictive covenant should treat the outcome as genuinely open.

Are non-competes enforceable against independent contractors in Alabama?

Generally not. The exceptions in Section 8-1-190(b)(4) and (b)(5) are written to cover an agent, servant, or employee of a commercial entity. A genuine independent contractor is usually not an employee or a servant, which is why non-competes against contractors are frequently unenforceable in Alabama. Two cautions. The list also includes agent, and a contractor may be acting as one depending on the arrangement. And whether someone is genuinely an independent contractor depends on how the working relationship operates, not on the label in the contract.

What is the difference between a non-compete and a non-solicitation agreement in Alabama?

A non-compete restricts you from working in a similar business in a defined area. A non-solicitation restricts you from approaching customers. Alabama treats them under separate exceptions with different time presumptions, and the two can survive or fail independently. It is entirely possible for a non-compete to be unenforceable against you while a non-solicitation provision in the same agreement still has force.

How long can a non-solicitation agreement last in Alabama?

Under Section 8-1-190(b)(5), an employee may agree not to solicit current customers subject to reasonable time restraints. Restraints of 18 months, or for as long as post-separation consideration is paid for the agreement, whichever is greater, are presumed to be reasonable. Note the wording: it covers current customers, not every customer the business has ever had.

Did the FTC ban non-compete agreements?

No, and the rule that would have is gone. The Federal Trade Commission adopted a rule that would have banned most non-competes nationwide, a court set it aside, the Commission dismissed its appeals in September 2025, and the rule was formally removed from the Code of Federal Regulations effective February 12, 2026. The FTC has said it may still challenge individual non-competes case by case, but there is no federal ban. For Alabama workers and employers, state law governs.

What is a protectable interest under Alabama non-compete law?

Section 8-1-190(b) allows the listed contracts only to preserve a protectable interest. That framing matters. A restriction that exists to keep a competent person out of the market, rather than to protect something the business genuinely owns such as customer relationships, confidential information, or purchased good will, is on much weaker ground. Identifying what interest the employer is actually protecting is usually the first question in any review.

Does a non-compete apply when I sell my business in Alabama?

Yes, and this is the exception that sits most squarely inside the statute. Under Section 8-1-190(b)(3), someone who sells the good will of a business may agree not to carry on a similar business or solicit that business customers within a specified geographic area, for as long as the buyer carries on a like business. Restraints of one year or less are presumed reasonable. The logic is that the buyer paid for the good will and is entitled to keep it.

Can I negotiate a non-compete before signing in Alabama?

Usually yes, even when an employer presents the agreement as standard. Scope, geography, duration, the definition of competing work, and what happens if you are terminated without cause are all commonly negotiated. The leverage is highest before you sign. If you have already signed, the agreement is still worth reviewing, because an unenforceable restriction does not become enforceable just because you agreed to it.

This article is general information about Alabama law, not legal advice about your agreement. Restrictive covenant questions are fact-specific, and the outcome depends on your role, your contract, and your working relationship.