Non-Compete Agreement in Louisiana
State-specific overview · Employment Law
Louisiana strictly limits non-competes and requires they be necessary to protect legitimate business interests, with narrow geographic and time restrictions.
How Louisiana treats Non-Compete Agreement
Louisiana Civil Code Article 870 restricts non-compete agreements more heavily than many states, requiring them to be necessary to protect trade secrets, customer relationships, or other legitimate interests. The restriction must be limited in time, area, and line of business; Louisiana courts scrutinize these provisions closely and often strike down overly broad clauses. Agreements must be in writing and cannot extend beyond what is reasonably necessary. Louisiana disfavors non-competes and interprets them narrowly against the employer.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Louisiana.