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Attorneys at Law, Corporate Transactions, Business and 2026

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The document discusses Alabama's new Restrictive Covenants Act, effective January 1, 2016, which replaces the previous statute governing non-competition and non-solicitation agreements. It outlines the general rule against restrictive covenants, exceptions for enforceability, required components for valid agreements, and the importance of careful drafting. Key features include a blue pencil rule allowing courts to modify overly broad restrictions, presumptive reasonable time periods for certain agreements, and a shift in the burden of proof regarding undue hardship. The document emphasizes the need for businesses to review and potentially revise their restrictive covenants in light of these changes.

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Begin by reviewing the introductory section that outlines the purpose of the form. This will help you understand the context of the document.
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Proceed to complete each section regarding restrictive covenants. Pay close attention to definitions and required components outlined in the document.
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