Louisiana Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in Louisiana?

Yes. Non-compete agreements are enforceable in Louisiana but these contracts are governed by strict state laws and must meet certain requirements to hold up in court.

  • Specific language. The contract cannot be overly broad and must include specific language about the restrictions imposed on the employee.
  • Geographic areas. The agreement must include specific geographic areas in which the employee is restricted from working. The contract must name specific towns or localities and these locations must be places that the employer operates in.
  • Prohibited industries. Non-compete agreements will never be enforced for employees who sell motor vehicles or for attorneys.

How Long Does a Louisiana Non-Compete Agreement Last?

According to Louisiana state statutes, a non-compete agreement cannot last longer than two years. The time begins when the employment relationship ends, not when the contract is formed. Any non-compete that lists a longer duration than two years will be deemed unenforceable.

How Do You Get Around a Non-Compete Agreement in Louisiana?

To get around a non-compete agreement in Louisiana, the employee must show that the agreement does not adhere to the laws governing these contracts. The law requires that non-compete agreements are specific in scope, contain specific geographic areas, and do not extend past two years. If an employee can show that any one of these conditions are not met, the court may strike down the contract.

What Voids a Non-Compete Agreement in Louisiana?

In Louisiana, all contracts must be signed voluntarily to be enforceable. Any contract that is signed by coercion or under false pretenses will be void. If an employee signs a non-compete agreement under the threat of being fired, the agreement may be void. Similarly, if an employer lies to the employee to get them to sign the agreement, it may also be void.

Frequently Asked Questions

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Asked on Dec 12, 2023

Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?

I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?

Matthew S.

Answered Dec 16, 2023

No, this at worst is a civil matter and not a criminal matter. F

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Employment

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Asked on Jun 29, 2023

Noncompete agreement breach consequences?

I recently left my job as an employee at a company that I had worked for for over a year. I was asked to sign a noncompete agreement when I began the job, which I did. I have since started a new job in the same industry as my former employer, which is in violation of the noncompete agreement. I am now wondering what the consequences of this breach of contract may be and am seeking legal advice.

Gregory F.

Answered Jul 6, 2023

I would be happy to schedule a paid telephone consultation with you to review the non-compete agreement, advise you on its scope and enforceability, and answer your questions. Please contact me via email at greg@fidlonlegal.com to discuss.

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Asked on Jun 29, 2023

Noncompete agreement geographic scope?

I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.

Daniel D.

Answered Jul 25, 2023

The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.

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Asked on Jul 13, 2023

Can a noncompete agreement be waived?

I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.

Thomas L.

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Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

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Asked on Jul 4, 2023

How does a noncompete agreement work?

I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.

Nancy B.

Answered Aug 4, 2023

In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett

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