HB494 - Alabama Non-Disparagement Obligations Act

• Establishes the Alabama Non-Disparagement Obligations Act allowing parties to create enforceable non-disparagement obligations in written employment separation, business termination, and legal settlement agreements.

• Non-disparagement obligations are enforceable through civil action only when the contract contains explicit non-disparagement language, a disparaging statement is made by the obligated party, and either identifiable damages occur or liquidated damages provisions are automatically triggered.

• Defines "disparaging statement" broadly to include statements that discredit reputation, diminish character through invidious comparisons, question integrity or honesty, disclose truthful private information, or knowingly communicate plainly false or misleading information.

• Provides affirmative defenses allowing good faith statements made for law enforcement, regulatory, legal, subpoena, discovery, litigation, or federally protected statutory rights purposes without liability for breach.

• Requires all pleadings and motions in non-disparagement disputes be filed under seal unless a compelling public interest is shown to unseal, and allows liquidated damages claims without proof of actual damages unless otherwise specified in the contract.