Summary
Explains, through a composite example, what an Alabama charging order under Ala. Code 10A-5A-5.03 generally gives a judgment creditor of one LLC owner: a lien on the transferable interest and the right to distributions on it, no access to company property through that remedy, no membership or management rights, and no foreclosure. Covers the owner’s retained member rights and duties, the exclusive-remedy and foreclosure limits, and five operating-agreement checks. Single-member LLCs are outside the article’s scope.
By: Jordan Gerheim, CEO – Outside Chief Legal LLC
Alabama’s Trey’s Law limits the use of agreement provisions that prohibit disclosure of sexual abuse or related facts. For businesses that use employment, separation, settlement, or nondisclosure agreement templates, the law provides a reason to review confidentiality language before reusing those forms.
The review should focus on what each provision restricts, whom it binds, and when the agreement was entered into, executed, or amended. The law also recognizes the importance of protecting survivors’ privacy alongside their ability to speak about their experiences.
Quick answer: Alabama’s Trey’s Law took effect October 1, 2026. It makes agreement provisions void and unenforceable when they prohibit an individual or entity from disclosing an act of sexual abuse, as defined by the statute, or facts related to it.
The restriction applies to agreements entered into, executed, or amended on or after October 1, 2026. Its scope is limited to elements related to the act of sexual abuse. The statute does not apply to other aspects of an agreement, including compensation.
What is Trey’s Law in Alabama?
Trey’s Law is the name given to legislation passed as Alabama SB 30 during the 2026 regular session. It addresses agreement provisions that prohibit disclosure of sexual abuse or related facts.
The Legislature declared that agreements prohibiting these disclosures are against Alabama’s public policy. In this context, that declaration reflects the state’s stated interest in preventing sexual abuse, supporting survivors, and protecting public safety.
The Legislature also stated that the law is intended to protect survivors’ rights to speak freely and to maintain privacy and confidentiality regarding their identities, experiences, and trauma. The law should not be described as requiring survivors to share their experiences publicly.
What does Trey’s Law make void and unenforceable?
The law addresses provisions within agreements rather than automatically invalidating an entire agreement.
A provision is void and unenforceable if it prohibits an individual or entity from disclosing an act of sexual abuse or related facts to another individual or entity. In plain language, a covered provision cannot be enforced to prevent those disclosures.
The statutory language covers restrictions imposed on individuals and entities. A review should therefore consider whom the provision binds, not just the document’s title.
Which agreements does the law cover?
The statute expressly names nondisclosure agreements, confidentiality agreements, employment agreements, and settlement agreements. It also includes any other type of agreement.
A separation agreement may therefore require review even though the statute does not list it by name. The relevant question is whether its provisions prohibit disclosures covered by the law.
An NDA that protects business information may also contain broader language. Its title alone does not establish whether a particular restriction is affected.
What does the statute mean by sexual abuse?
Trey’s Law defines sexual abuse by reference to conduct that would constitute violations of specified Alabama criminal statutes. The definition applies regardless of whether the conduct has led to a criminal charge, conviction, adjudication, or sentence.
The statutory definition controls. Businesses should not assume that it includes every allegation of workplace harassment or misconduct, or that a criminal charge is necessary for the law to apply.
Whether particular conduct falls within the definition is a question for counsel.
Does the law affect the rest of an agreement?
The statute states that its restriction applies solely to elements of an agreement related to the act of sexual abuse. It does not apply to other aspects, including compensation.
That limitation does not establish whether every remaining term is otherwise valid or enforceable. It means Trey’s Law does not automatically invalidate an entire agreement because it contains a covered disclosure restriction.
Counsel should review the agreement as a whole before the business relies on a particular provision.
How does the October 1, 2026 date apply?
The statute applies to agreements entered into, executed, or amended on or after October 1, 2026.
An older template does not take a new agreement outside that language. For example, an agreement executed after the effective date may be covered even if the business used a form drafted years earlier.
The statute also expressly includes agreements amended on or after the effective date. An agreement originally signed before October 1, 2026 should not be excluded from review solely because of its original signing date.
For earlier agreements, counsel should assess any later amendments and other applicable law before advising whether a confidentiality provision can be enforced.
Which template provisions should businesses review?
A review can begin with employment, separation, settlement, confidentiality, and nondisclosure agreement templates. Other forms may also need attention if they restrict what an individual or entity can disclose.
Broad restrictions deserve particular attention. Language prohibiting discussion of an employment relationship, a dispute, or the circumstances of a departure may cover more than the drafter intended.
The review should identify who is bound by the restriction, what information it covers, and whether its wording could prohibit disclosure of sexual abuse or related facts.
The effect of a particular provision depends on its language and circumstances. Businesses should not assume that every confidentiality clause is affected or that a standard exception will resolve every issue.
How can a business prepare for a template review?
Start by gathering the forms used for hiring, employment matters, departures, dispute resolution, and protection of confidential information. Record each template’s revision date and identify where the current version is stored.
Next, identify provisions restricting what a person or entity may say, disclose, or share. Note the subject of each restriction and whom it binds. This can help counsel focus the review without asking staff to decide whether a provision is legally enforceable.
Distinguish the protection of business information, such as pricing or customer lists, from restrictions on disclosures covered by Trey’s Law. Counsel can assess whether the language needs revision to preserve its intended business purpose without prohibiting protected disclosures.
Keep template version dates separate from agreement dates. A template’s revision history helps staff identify the current form. The dates an actual agreement was entered into, executed, or amended are relevant to the statute’s applicability.
After counsel approves revisions, replace outdated shared copies and identify who is responsible for maintaining the approved versions.
Frequently asked questions
When did Trey’s Law take effect?
Alabama’s Trey’s Law took effect October 1, 2026.
Does Trey’s Law apply to agreements signed before October 1, 2026?
The statute expressly applies to agreements entered into, executed, or amended on or after October 1, 2026. Its wording therefore includes agreements amended on or after that date, even if originally signed earlier.
Whether a particular earlier agreement or provision can be enforced requires review of the agreement, any amendments, and other applicable law.
Are separation agreements covered?
The statute includes any type of agreement containing a covered disclosure restriction. A separation agreement may therefore fall within its scope, depending on its provisions and the relevant dates.
Does there have to be a criminal charge?
No. The statutory definition applies regardless of whether the conduct has led to a criminal charge, conviction, adjudication, or sentence. The conduct must still fall within the definition established by the law.
Does the law invalidate an entire agreement?
Not automatically. The statute limits its application to elements related to the act of sexual abuse and excludes other aspects, including compensation. Other legal questions about the agreement require separate review.
Who should review the business’s templates?
An attorney should assess the provisions, relevant agreement dates, and statutory definition. Staff can support that review by gathering current forms, identifying disclosure restrictions, and maintaining approved versions.
General information only. This article is not legal advice.
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