Skip to content
Caregiver Scheduling

Can a home care agency make caregivers sign a non-compete in Alabama?

Last verified October 17, 2026 · All Alabama resources

Restricted. Alabama voids contracts that restrain anyone from a lawful trade except as the statute allows. An employee may agree not to work in a similar business within a specified area for a reasonable time; two years or less is presumed reasonable. There is no wage threshold, so this can apply to caregivers. A contract between businesses limiting hiring of each other's employees is allowed only where the employee holds a position uniquely essential to the management, organization or service of the business, which bears on client no-hire clauses.

Status Restricted
Client non-solicitation An employee may agree not to solicit the employer's current customers for a reasonable time. Restraints of 18 months, or as long as post-separation consideration is paid if longer, are presumed reasonable.
Statute Ala. Code § 8-1-190 et seq.

What about a client hiring your caregiver directly?

That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.

What should you confirm?

Alabama courts have historically treated some licensed professionals (such as physicians) as outside the statute; confirm before relying on a covenant with a licensed clinician.

General information, not legal advice.

Sources

More for Alabama

Non-compete rules by state: other states

Related guides

These free tools are made by the team behind Caregiver Scheduling, caregiver scheduling software for home care agencies.

Simple pricing

From $199 /month

Up to 10 caregivers on Starter, 50 on Growth.

More than 50 caregivers? We'll put together a custom Scale plan for your agency.