The new law expressly authorizes the long-standing practice of «blue pencil» in the courts, which allows a court to modify or restrict the length or geographic scope of an agreement (without deboning the entire agreement) if it considers that one of the two clauses is excessive. If you lose your job and are subject to a non-compete agreement, you have two options: (1) find a non-competing job; or (2) take a competing job, take the risk of being sued, call on a lawyer to defend you and argue that the restrictions are inappropriate and impose inappropriate harshness on you. I would like to warn you that some non-competition clauses contain clauses that require you to pay your former employer`s legal fees if you lose, and some contain liquidated compensation clauses that impose an extreme fine. Non-demand agreements are specifically regulated. The treatment of non-appeal agreements by the new law is a significant change in the law. In 2006, the Alabama Supreme Court found that Alabama`s earlier version of P. 8-1-1 did not regulate partial trade restrictions. Subsequently, some courts found that non-appeal agreements did not require the identification of a reasonable interest and were governed only by a notion of adequacy in terms of scope and duration. However, the new law now appears to require an employer to have an interest in protecting the application of a non-invitation agreement and to appear to have other requirements similar to those required to enforce competition agreements.
New delays presumed. The most notable change to the new law is the implementation of presumed one-year, 18-month or two-year time limits for restrictive agreements in the sale of a business, non-profit agreements and the most favourable non-compete agreements. The new provision for the sale of a business goodwill could be the most worrisome, given that Alabama courts have upheld five-year competition and non-appeal agreements resulting from the sale of a business. A contract that limits the ability of an individual or company to recruit or recruit the representative, agent or staff of a contracting party when the representative, public servant or employee is in a position essential to the management, organization or service of the company. An agreement to limit the business relationship of an individual or a company. In the event of a sale of a business, a non-competition and non-formal notice agreement with the buyer. A non-competition agreement between a business entity and its representative, staff or staff.