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Terms of Employment: Alabama

Terms of Employment requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Randall Scott Hetrick, Adams and Reese LLP


  • Employers in Alabama may discharge employees without incurring common law liability for breach of contract or fraud, unless the employer has taken some action, intentionally or inadvertently, which alters the employment at-will presumption. See The At-Will Employment Relationship.
  • Alabama has adopted an age discrimination statute and two anti-retaliation statutes that provide exceptions to the at-will employment rule by prohibiting employers from basing employment decisions on an employee's protected status or protected activities. See Statutory Exceptions to the Presumed At-Will Employment Relationship.
  • Through written contracts, Alabama employers may require certain employees to comply with reasonable post-employment restrictions on competition with the employer or on solicitation of the employer's customers. See Noncompetition and Nonsolicitation Agreements.