Alabama physician non-compete law

Who it covers

Professionals as recognized by Alabama courts (the statute does not define the term). Odess v. Taylor (Ala. 1968) applied the exemption to a physician; courts have reportedly treated physical therapists as professionals too.

Exceptions

• Ala. Code § 8-1-190(b) permits certain restraints (sale of business goodwill, employee covenants with a 'commercial entity', partnership or entity dissolution); how these apply to professionals is unsettled

Notes

Rests on case law: the 2015 statute (Ala. Code § 8-1-190 et seq.) preserves the courts' professional exemption, and Odess v. Taylor (1968) held a physician covenant void. No appellate decision applying this to post-2016 agreements was found, and how the statute's employer exceptions interact with the exemption is unsettled. Whether customer non-solicitation restrictions on professionals are also unenforceable is less clear.

Sources

• Ala. Code § 8-1-190 (Act 2015-465) (statute)
• Ala. Code § 8-1-196 (professional exemptions preserved) (statute)
• Odess v. Taylor, 282 Ala. 389, 211 So. 2d 805 (Ala. 1968) (court)
• Burr & Forman via Medical Association of the State of Alabama (Jan 25, 2023) (secondary)
• Bradley, Noncompete Agreements: Alabama (2021) (secondary)

Questions to ask about your contract

• Is the radius measured from your practice site or from every location the employer owns?
• Does the restriction apply if the employer terminates you without cause?
• Is there a buyout, and how is the amount calculated?
• What does your state's law say about physician non-competes?