11th Circuit Rules on Noncompete Agreements: Employment Law Manual Updated

Authors: Melissa A. Silver and Marta Moakley, XpertHR Legal Editors

In Dawson v. Ameritox, Ltd, the 11th Circuit Court of Appeals affirmed an Alabama federal court ruling that held that a noncompete agreement signed prior to the start of employment is unenforceable, even if the employee had accepted the employment offer. This decision confirms Alabama law that an employer-employee relationship must exist at the time the agreement is executed.

As a result of this decision, the Terms of Employment: Alabama and Employee Communications: Alabama sections of the Employment Law Manual have been updated.