Non-Compete Agreements in Louisiana: Strict Statutory Rules
Louisiana's Unique Approach
Louisiana takes a distinctive statutory approach to non-competes. Under La. R.S. 23:921, every contract restricting anyone from exercising a trade or profession is null and void unless it falls within specific statutory exceptions. This makes Louisiana one of the more restrictive states for employers.
The Statutory Requirements
For a non-compete to be enforceable in Louisiana, it must strictly comply with La. R.S. 23:921:
- Must be in writing
- Must specify the parishes (counties), municipalities, or parts thereof where the restriction applies. Louisiana is unique in requiring geographic limits defined by parish boundaries.
- Duration must not exceed two years from the date of termination of employment
- Must be related to an employer-employee relationship, a partnership, franchise, or business sale
The Parish Requirement
Louisiana's most distinctive feature is that non-competes must identify specific parishes by name. A non-compete that says "within 50 miles" or "in the southeastern United States" without naming specific parishes is void under the statute. Courts have strictly enforced this requirement, invalidating agreements that use any geographic description other than named parishes or municipalities.
Two-Year Maximum
The statutory maximum is two years from the end of employment. Any non-compete with a longer duration is unenforceable as to the excess period, and courts may void it entirely rather than reduce it.
Strict Construction
Louisiana courts strictly construe La. R.S. 23:921 because the general rule is that such contracts are void. Any ambiguity is resolved in favor of the employee. Courts will not reform or blue-pencil a non-compliant non-compete. If the agreement fails to meet any statutory requirement, it is null.
Red Flags
- Geographic scope described by miles, regions, or states instead of named parishes
- Duration exceeding two years
- Oral agreements or vague terms about what constitutes competition
- Failure to specify the parishes by name
- Restrictions covering activities beyond the scope of the employee's work
When to Consult a Lawyer
Consider consulting a Louisiana attorney experienced in employment law if you are reviewing a non-compete, particularly to verify compliance with the parish-naming requirement. Louisiana's strict statutory approach means technical defects can render an otherwise reasonable agreement completely void.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.