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Noncompete & Confidentiality - Alabama

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  • Noncompete & Confidentiality - Alabama

    Present employer, company 'A' requires [U]all[U] new employees to sign this at time of hire. Business is Mfg/Distribution. I hold the position of Corp Controller. I responded to a recruiter posting for a position of VP/CFO level at another local Distribution/Retail company (company 'B'). My concern is that there is some minor crossover between product lines, customers, etc. Company B is much smaller. Very possible that both companies are doing business with some of the same customers.. but selling different product lines.

    Questions I wrestling with:

    If it was sales and I had customer relationships, yes, it would be obvious the non-compete would be an issue -- but what about Finance positions?

    Does company A have to show damage or harm in order to pursue legal action?

    I have read that an individual must receive something in exchange for the non-compete. Is simply being an employee meet this requirement?

    Any input appreciated.. I am hesitant to pursue conversations with Company B if this will be a dead end.. but it is very frustrating to think I might have to pass on a great opportunity.

  • #2
    You need to show the agreements to an attorney in your state. It's hard (if not impossible) for us to discuss the ins and outs and enforceability of agreements we have not read.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


    • #3
      This is Alabama's take on non-competes. Non-competes are unenforceable against professionals, such as lawyers, doctors, and accountants. They can be enforceable against other employees to the extent necessary to protect the employer's legitimate interest, when reasonably restricted in time and geographic scope and when they don't impose an undue hardship on employees. To enforce a non-compete, employers usually have to show that an employee had access to confidential information or key customer relationships.

      You will want to take your agreement to an employment or contract attorney for review & advice.
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