Louisiana is one of the most employee-protective states in the country regarding non-compete agreements. La. R.S. 23:921 declares non-competes generally null and void, with narrowly defined statutory exceptions. To be enforceable, a non-compete must specifically identify the parishes, municipalities, or parts thereof where competition is restricted, must be limited to two years from the date of termination, and must arise out of one of the limited contexts authorized by statute — typically employment, partnership, or sale of business. The statute is strictly construed against the employer. A covenant that fails to specify the precise geographic territory parish-by-parish, or that exceeds the two-year limit, is unenforceable in its entirety. Louisiana courts do not generally blue-pencil under this statute.
What is a Enforceability?
A Louisiana non-compete agreement is governed by La. R.S. 23:921, which declares restraints on trade null and void except as specifically authorized by the statute. The authorized contexts include: (1) sale of goodwill of a business; (2) certain employment agreements; (3) partnership dissolutions; and (4) franchise agreements. To be enforceable in employment, the covenant must: (1) specifically identify the parishes, municipalities, or parts thereof where the restriction applies; (2) not exceed two years from termination; and (3) be tied to a defined business activity. La. R.S. 23:921 also addresses non-solicits and provides specific rules for computer programmers, certain physicians, and other specialized workers.
Red flags to watch for
La. R.S. 23:921(C) requires the non-compete to specifically identify the parishes, municipalities, or parts thereof where the restriction applies. A geographic scope described as 'the State of Louisiana' or 'the southeastern United States' without parish-by-parish specification is unenforceable.
La. R.S. 23:921(C) caps the post-termination restriction at two years. A covenant exceeding two years is void on its face. Louisiana courts do not generally blue-pencil this term.
La. R.S. 23:921(A)(2) specifically provides that Louisiana law governs the enforceability of non-competes for Louisiana employees, regardless of choice-of-law clauses. An attempt to use Texas or Delaware law to enforce a non-compete against a Louisiana employee will not succeed.
La. R.S. 23:921(C) requires the restriction to be tied to the specific business activity of the employer. A broad ban on any work in the industry is overbroad.
Louisiana's statutory framework distinguishes between employees, officers, partners, and sellers of goodwill, with different rules for each. A covenant that misframes the relationship may fail.
Louisiana non-solicits are also covered by La. R.S. 23:921 and must meet the geographic and duration requirements. Generic non-solicits that lack parish specification or exceed two years are unenforceable.
La. R.S. 23:921(L) provides specific rules for computer programmers. Covenants in tech employment must satisfy these requirements in addition to the general framework.
Your legal rights
Louisiana non-competes are governed by La. R.S. 23:921, which is strictly construed in favor of employees. Leading cases include SWAT 24 Shreveport Bossier, Inc. v. Bond, 808 So. 2d 294 (La. 2001), Vartech Systems, Inc. v. Hayden, 951 So. 2d 247 (La. App. 1 Cir. 2006), and Causin, L.L.C. v. Pace Safety Consultants, LLC, 2019 WL 6118529 (La. App.). La. R.S. 23:921(A)(2) preserves Louisiana law against choice-of-law clauses. Louisiana Civil Code articles on public policy (Articles 7 and 2030) reinforce the public-policy nature of the prohibition. The Louisiana Uniform Trade Secrets Act (La. R.S. 51:1431 et seq.) provides independent trade secret protection.
Questions to ask before you sign
- 1Does the covenant specifically identify the parishes, municipalities, or parts thereof where the restriction applies?
- 2Does the post-termination period exceed two years? If so, the covenant is likely void.
- 3Does any choice-of-law clause attempt to use another state's law? Louisiana law applies regardless.
- 4Is the restriction tied to a specific business activity carried on by the employer?
- 5If you are a computer programmer, does the covenant satisfy La. R.S. 23:921(L)?
- 6Does the covenant misframe your role — for example, treating an employee as a partner or seller of goodwill?
- 7Are the geographic and temporal limits described with the precision the statute requires?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.