Section 8-1-220 – Short Title.

Section 8-1-220 Short title. This article shall be known and may be cited as the Alabama Non-Disparagement Obligations Act. (Act 2021-503, §1.)

Section 8-1-221 – Definitions.

Section 8-1-221 Definitions. As used in this article, the following terms shall have the following meanings: (1) COVERED CONTRACT. Any written employment separation, termination, or post-employment settlement or release agreement written solely for that purpose; any written business relationship termination agreement written solely for that purpose; and any written settlement between parties to a legal […]

Section 8-1-222 – Validity and Enforceability of Non-Disparagement Obligations.

Section 8-1-222 Validity and enforceability of non-disparagement obligations. (a) Non-disparagement obligations in covered contracts, whether unilateral, bilateral, or multilateral, shall be valid and enforceable for any period of time agreed to by the parties. (b) Except as otherwise prohibited by law, any covered contract between two or more persons or parties obligating one or more […]

Section 8-1-223 – Contracts to Be in Writing, Signed, and Supported by Adequate Consideration.

Section 8-1-223 Contracts to be in writing, signed, and supported by adequate consideration. In order to be valid and enforceable, a covered contract shall be in writing, signed by all parties, and supported by adequate consideration. (Act 2021-503, §4.)

Section 8-1-224 – Liability for Breach of Non-Disparagement Obligation.

Section 8-1-224 Liability for breach of non-disparagement obligation. In order to be enforceable, a covered contract shall state in writing that the obligated party may not be held liable for breach of the non-disparagement obligation if the obligated party makes an otherwise disparaging statement in good faith and solely for any of the following purposes: […]

Section 8-1-225 – Enforcement Requirements; Sealing of Pleadings and Motions.

Section 8-1-225 Enforcement requirements; sealing of pleadings and motions. (a) A covered contract containing a non-disparagement obligation in writing requires the parties to the covered contract to file under seal all initial and responsive pleadings and motions, including, but not limited to, motions under Alabama Rule of Civil Procedure 65 seeking enforcement of a covered […]

Section 8-1-226 – Severability of Unenforceable Provisions.

Section 8-1-226 Severability of unenforceable provisions. In the event any provision or provisions of a covered contract are found by a court of competent jurisdiction to be unenforceable as a matter of law, such provisions shall be severable from the covered contract and shall not affect the enforceability of the remainder of the covered contract. […]

Section 8-1-227 – Applicability of Article.

Section 8-1-227 Applicability of article. (a) Nothing in this article affects any defense or immunity otherwise available under applicable law. (b) Nothing in this article shall reduce, void, or diminish any obligations or contractual obligations of any kind or nature between shareholders, owners, members, and officers of any entity that is governed by Title 10A. […]

Section 8-1-228 – Affirmative Defenses.

Section 8-1-228 Affirmative defenses. (a) In an action for breach of a contract governed by this article when actual damages are sought, a defendant may assert affirmative defenses available under the law. (b) If actual damages are sought, the defendant may also assert the following additional affirmative defenses: (1) The disparaging statement was made in […]

Section 8-1-229 – Remedies.

Section 8-1-229 Remedies. Upon a finding of whether there has been a breach of a contract governed by this article, the court may order and award any of the following: (1) Injunctive and other equitable relief as may be appropriate with respect to any actual or threatened breach. (2) The actual damages recoverable under existing […]

Section 8-1-230 – This Section Was Assigned by the Code Commissioner in the 2021 Regular Session, Effective January 1, 2022 This Is Not in the Current Code Supplement.

Section 8-1-230 Prospective application. Nothing in this article shall affect any agreement executed prior to January 1, 2022. (Act 2021-503, §11.)