Customer and Employee Non-solicitation Clause
(AL)

Summary

This template is a customer and employee non-solicitation clause that can be used alone or added to an employment or non-compete agreement. It is intended for private employers and complies with Alabama law. The text differs from the non-jurisdictional Customer and Employee Non-solicitation Clause. This template includes practical guidance, drafting notes, and alternate and optional clauses. IMPORTANT NOTE: On April 23, 2024, the FTC issued its final rule prohibiting new non-compete agreements with all workers. The rule provides that existing non-compete agreements with senior executives remain in force, and existing non-competes with all other workers are not enforceable. The term “senior executive” means a worker who makes more than $151,164 and who is in a “policy-making position.” The final rule is set to become effective 120 days after publication in the Federal Register, but it is being challenged in court, including by the U.S. Chamber of Commerce. For more information on the FTC’s final rule, see Fact Sheet on the FTC’s Noncompete Rule. For a full listing of key content covering restrictive covenant considerations, see Restrictive Covenants Resource Kit. For additional information on Alabama laws concerning customer and employee non-solicitation agreements, see Restrictive Covenants (AL). For information on laws concerning customer and employee non-solicitation agreements in Alabama and other states, and related forms, see Non-competes and Trade Secret Protection State Practice Notes Chart and Non-competes and Trade Secret Protection State Expert Forms Chart. For information on customer and employee non-solicitation agreements generally, see Customer and Employee Non-solicitation Agreements: Key Negotiation, Drafting, and Legal Issues.