The Alabama Supreme Court recently ruled that non-compete agreements must be signed by employers in order to be valid.
Alabama’s existing statute regarding non-compete agreement validity requires them to be “reduced to writing, signed by all parties, and be supported by adequate consideration.”
A recent lawsuit raised the question, however, of whether the aforementioned statute mandates an explicit physical signature as the sole form of agreement expression between parties, as opposed to recognizing other forms of agreement. The subsequent ruling has established that non-compete agreements lack enforceability unless accompanied by a physical signature from the employer.
We advise employers who use non-compete agreements in Alabama to familiarize themselves with this legal decision and prepare accordingly.