Are non-compete agreements enforceable in Louisiana?
1. Baseline Rule. La. R.S. 23:921 is unusually prescriptive. Section A(1) makes every covenant restraining a person from competing void as against public policy, except in specified categories. Section C governs employee covenants.
2. Strict Statutory Requirements. Under § 23:921(C), an employee covenant is enforceable only if it (a) specifies the parishes, municipalities, or parts thereof where competition is prohibited; (b) is limited to a maximum of 2 years from termination of employment; and (c) is limited to "a business similar to that of the employer."
3. Geographic Specificity. Louisiana requires named parishes/municipalities — generic geographic descriptions (e.g., "100-mile radius" or "states where employer does business") are NOT sufficient. SWAT 24 Shreveport Bossier, Inc. v. Bond, 808 So. 2d 294 (La. 2001); L&B Transport, LLC v. Brown, 2018-1369 (La. App. 1st Cir. 5/31/19).
4. Consideration. Continued at-will employment is sufficient consideration.
5. Wage Thresholds. None.
6. Blue Pencil / Reformation. Louisiana courts are split: some apply a limited blue-pencil to strike unreasonable parishes; others void the entire covenant. Vartech Systems, Inc. v. Hayden, 951 So. 2d 247 (La. App. 1st Cir. 2006).
7. Industry Carve-Outs. Lawyers barred by La. RPC 5.6. Physicians: § 23:921(I) permits non-competes against physicians but caps duration at 2 years and requires geographic specificity.
8. FTC Rule. Enjoined nationwide by Ryan LLC v. FTC (E.D. Tex. Aug. 2024); on appeal.
9. Garden Leave / Forfeiture-for-Competition. Forfeiture clauses are analyzed under § 23:921 and often void if not meeting statutory requirements.
10. Choice of Law. § 23:921(A)(2) voids any choice-of-law or forum-selection clause that deprives a Louisiana employee of § 23:921 protections.
This is legal information, not legal advice.
- Your covenant uses a generic geographic description without naming parishes
- Your covenant exceeds the 2-year statutory maximum
- Employer seeks an injunction in Louisiana district court
- La. R.S. 23:921
- SWAT 24 Shreveport Bossier, Inc. v. Bond, 808 So. 2d 294 (La. 2001)
- Vartech Systems, Inc. v. Hayden, 951 So. 2d 247 (La. App. 1st Cir. 2006)
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.