A Louisiana Non-Compete Agreement is a contract between employees and employers in Louisiana that limits the jobs an employee can take after leaving the company. It restricts the information that employees can share during and after employment.
The goal of a non-compete agreement in Louisiana is to prevent vital business secrets and confidential information from being exposed in a way that could hurt the company.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – Yes.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted?– Yes.
- Does continuing employment equal sufficient consideration? – Yes.
Legally Enforceable in Louisiana?
Yes, a non-compete agreement is legally enforceable in Louisiana as per RS 23:921. At the same time, the non-compete agreement must be within the rules and regulations of Louisiana for it to be enforceable. If a non-compete agreement violates the state’s laws, then a judge could deem that specific non-compete agreement unenforceable.
What’s Protected?
There are several categories of information that a Louisiana non-compete agreement can protect. For example, an employer can use a non-compete agreement to protect the company’s financial information and trade secrets.
In addition, information about training protocols and management techniques can also be deemed confidential. If an employer decides to do so, they can protect this information from being shared using Louisiana non-compete agreements.
Reasonable Use and Exemptions
A Louisiana non-compete agreement must be reasonably used to be enforceable. It cannot last for an undue amount of time, and it must specify the specific geographic reach of the non-compete agreement. The agreement must also clearly identify the employer’s line of work and be signed when an employer-employee agreement exists. A non-compete agreement might not be legally enforceable if it does not meet these standards.
In addition, some people are exempted from signing a non-compete agreement. Automobile salespeople and real estate broker’s licensees are not allowed to be covered by a non-compete agreement.
Time Limitations
The non-compete agreement cannot last longer than a reasonable amount of time, given the nature of the business. If the non-compete is breached, the offended party has up to ten years to bring a lawsuit.
Geographical Limitations
In Louisiana, no laws specify a geographic limit to the non-compete agreement; however, Louisiana statutes indicate that a geographic limitation has to be specified. A judge could toss it out if the non-compete agreement has no geographic limitation.
Furthermore, the geographic restriction cannot be overly restrictive against the employee. Otherwise, it might be deemed unenforceable.
Sample
Download a Louisiana Non-Compete Agreement in PDF and Word format:
