Noncompete And Separation Agreements


Professionals often encounter opportunities to increase their salary and take on additional responsibilities with a different employer. Others with an entrepreneurial spirit may wish to start their own company. In both instances, workers may discover that a contract they signed with their current employer prohibits them from working for a competitor or soliciting business from the clients they have worked with at that employer.

An increasing number of companies are incorporating noncompete clauses into employee contracts, particularly in competitive fields such as technology, sales and for licensed professionals — lawyers, doctors, engineers, etc. Also known as "covenants not to compete," these contracts typically prevent individuals from working for certain competitors or in a geographic area for a certain period of time after they leave a company. They may even set restrictions on job opportunities after a worker has been laid off.

The law office of Winston Cooks, LLC, in Birmingham, represents employees in disputes with their employer regarding noncompete clauses and other contract disputes. We also assist in the contract negotiation stage by reviewing contracts before they are signed to prevent employees from entering into agreements they do not completely understand.

Alabama's Approach To Noncompete Contracts

Alabama laws regarding noncompete agreements are more restrictive than in many other states. They are typically enforceable, however, as long as:

  • The employer has an interest to protect.
  • The noncompete restriction is reasonably related to that interest.
  • The restriction is for a reasonable amount of time and geographic location.
  • The restriction poses no undue hardship on the employee.

If your employment opportunities are being restricted by a noncompete agreement or if you have been asked to sign a noncompete agreement, it is important to consult with a knowledgeable employment law attorney.

We Also Review And Negotiate Severance And Separation Agreements

Our attorneys also have experience reviewing and negotiating severance or separation agreements for employees who have been terminated or who have been asked to sign such an agreement as part of the hiring process.

These agreements may absolve an employer of any liability regarding claims against them or they may include noncompete agreements that are not in your best interest. Terms of a separation agreement can be negotiated. It is important to fully understand what the terms are before you agree to them.

Contact us to schedule a free consultation. We can answer your questions regarding noncompete and separation agreements, and recommend the best course of action.