The Louisiana non-compete agreement is a contract between an employer and an employee in which the employee agrees not to work in competition with the employer for the duration of their employment and for a specified period following their termination date. The non-solicitation clause of the agreement states that the employee is not to hire employees from the employer’s organization for a set period of time. Louisiana is generally opposed to non-compete agreements and will only enforce agreements that have a duration of two (2) years or less. Furthermore, the agreement must clearly state the parishes and municipalities in which the employer has an actual business. Failure to meet these requirements renders the contract null and void.
Laws – LA. R.S. 23:921
Non-Compete Limit – Must be two (2) years or less in duration from the employee’s termination date and can only cover the municipalities or parishes within which the employer’s business operates.
Non-Solicitation Limit – Two (2) years. The agreement must specify the municipalities or parishes to which the non-solicitation applies.