A non-compete agreement is a frequent tool used in Louisiana between employees and employers. An employer can use a Louisiana non-compete agreement to limit the jobs that an employee can take after leaving the company, as well as restrict 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.
Is a Non-Compete Legally Enforceable in Louisiana?
Yes, a non-compete agreement is legally enforceable in Louisiana. 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 laws of the state, then a judge could deem that specific non-compete agreement unenforceable. [1]
What’s Protected?
There are several categories of information that can be protected by a Louisiana non-compete agreement. 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, he or she can protect this information from being shared using Louisiana non-compete agreements.
Reasonable Use and Exemptions
A Louisiana non-compete agreement has to be reasonably used for it 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 also has to clearly specify the employer’s line of work and be signed at the time an employer-employee agreement exists. If a non-compete agreement does not meet these standards, then it might not be legally enforceable.
In addition, there are some people who are exempted from signing a non-compete agreement. Automobile salesmen and real estate broker’s licensees are not allowed to be covered by a non-compete agreement.
- 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
Non-Compete Agreement Louisiana Limitations
There are some limitations that could be included in a Louisiana non-compete agreement. If a non-compete agreement is found to extend beyond these limitations, then it could be invalidated.
Limitations on time
The non-compete agreement cannot last longer than a reasonable amount of time given the nature of the business. In the event that the non-compete is breached, the offended party has up to ten years to bring a lawsuit.
Non-compete agreement Louisiana geographical limitations
In Louisiana, there are no laws that specify a geographic limit to the non-compete agreement; however, Louisiana statutes indicate that a geographic limitation has to be specified. If there is no geographic limitation in the non-compete agreement, then it could be tossed out by a judge. Furthermore, the geographic limitation cannot be overly restrictive against the employee. Otherwise, it might be deemed unenforceable.
Louisiana Non-Compete Agreement Sample
If you are interested in drafting a non-compete agreement in Louisiana, take a look at our Louisiana non-compete agreement sample, which is available for download in PDF and Word formats:
Non-Compete Agreement
