A company’s success often hinges on factors beyond its control. The market, the economy, and competitors can all play a part in how a business performs. However, many people may overlook something:  the law. In fact, three Alabama business laws might affect your business in big ways. In this article, we will look at these laws and how they might apply to your company’s operations.

Non-Compete Agreements

A business may ask employees to sign a non-compete agreement as a condition of their employment. This document essentially is a contract between employer and employee. A non-compete agreement is intended to prevent the employee from entering into competition with their employer for a reasonable period of time.

Generally, non-compete agreements must be fair for both the employer and employee. Former employees sometimes challenge non-competes claiming the terms are too restrictive.

Alabama law allows employees to use this type of agreement to:

  • limit a former employee’s actions within a certain geographic area,
  • stop a former employee from starting or working in a similar business, and
  • prevent former employees from soliciting clients and customers.

For example, a company might require its sales staff to sign a non-compete agreement to protect its proprietary information, sales and marketing strategies, and client lists.

Statute of Limitations Laws

When a company is harmed by another person or entity, filing a lawsuit may be the best way to be made right. However, claims can be doomed if not filed before the statutory deadline runs out.

Alabama statute of limitations laws set forth how long you have to file certain claims that may affect your business:

  • Fraud – 2 years from date of discovery
  • Trespass – 6 years
  • Collection of rents – 6 years
  • Written contracts (under seal) – 10 years
  • Written contracts (not under seal) – 6 years
  • Collection of Debt on Account – 6 years for a stated liquidated account, 3 years for open unliquidated account.

This list does not include all of the situations where your business might have a claim. It’s wise to contact an Alabama business lawyer if a legal disagreement arises.

Deceptive Trade Practices

When a company uses fraudulent, unethical, or deceptive ways to attract business, it may violate a state’s deceptive trade practices law. Alabama business laws regarding such practices can be found in the Code of Alabama, Title 8. The law intends to protect the public from unfair business practices.

Companies that knowingly violate this law may face investigations, lawsuits, or other legal actions.

Learn More About How Alabama Business Laws Affect Your Business

Business laws easily can complicate your business operations, whether you know about these laws or not. If you operate a business or plan to start one, talk to a business lawyer.

Attorney Bruce Adams helps clients just like you with their legal needs. For a free consultation with an experienced Alabama attorney, contact us at 256-237-3339. Located in Anniston, we serve clients in Calhoun, Cleburne, Etowah, and St. Clair Counties.

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