Non-Compete Laws in Louisiana
Enforceable with limits
Louisiana restricts non-competes for primary care and other physicians (with time limits) and automobile salespeople. For other workers, non-competes must protect a legitimate business interest and be limited in scope, time, and other parameters described in the statute.
Key details
| Enforceability | Enforceable with limits |
|---|---|
| Banned industries | Primary care physicians and automobile salespeople have specific protections. |
| Blue pencil doctrine | No — Louisiana courts generally do not reform overly broad non-competes; they are either enforceable as written or void. |
| Key statute | La. Rev. Stat. §23:921 |
What this means for you
Louisiana has specific statutory requirements for non-competes. If your agreement does not meet these requirements, it may be void.
Non-compete laws in Louisiana: what you need to know
Louisiana takes a statutory approach to non-competes that is more structured than most states. Under Louisiana Revised Statutes Section 23:921, non-compete agreements must meet specific statutory requirements to be enforceable, including protecting a legitimate business interest and being limited in scope, time, and geographic area as described in the statute.
Louisiana provides specific protections for primary care physicians and other physicians (with time limits on non-competes) and for automobile salespeople. These targeted protections reflect the state's recognition that non-competes in certain professions can cause particular harm to the public or to workers with limited alternative employment options.
An important feature of Louisiana law is that courts generally do not reform overly broad non-competes. Unlike states that use the blue pencil doctrine to narrow agreements, Louisiana courts typically enforce non-competes as written or void them entirely. This means that an overly broad agreement is more likely to be struck down completely, which incentivizes employers to draft narrow, carefully tailored agreements from the start.
For Louisiana workers, the statutory framework provides clearer guidance than the common law approach used by many other states. If your non-compete does not meet the specific statutory requirements, it may be void. Consult an employment attorney to evaluate your agreement against the statute's requirements.
Louisiana's strict approach to non-competes, including its reluctance to reform overly broad agreements, is a meaningful protection for workers. In states that use the blue pencil doctrine, employers can draft aggressively broad agreements knowing that a court will narrow them if challenged. In Louisiana, that gamble is more likely to backfire because the court may void the entire agreement.
Louisiana's specific protections for physicians and automobile salespeople reflect the state's targeted approach to non-compete regulation. Rather than broad reforms, Louisiana has identified specific professions where non-competes cause particular harm and enacted targeted protections. Workers in other professions should monitor legislative developments for potential expansion of these protections.
Louisiana workers should pay close attention to the specific statutory requirements for non-competes. Because Louisiana courts generally enforce agreements as written or void them entirely, an employer that fails to meet even one statutory requirement may lose the entire protection of the non-compete. This strict approach can work in your favor if your employer's agreement contains technical deficiencies, even if the substantive restrictions might otherwise be considered reasonable.
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Frequently asked questions about non-compete laws in Louisiana
Generally not. Louisiana courts typically enforce non-competes as written or void them entirely. They are less likely than courts in other states to reform an overly broad agreement to make it reasonable.
Yes. Louisiana provides specific protections for primary care and other physicians, with time limits on non-compete restrictions.
Yes. Automobile salespeople have specific statutory protections under Louisiana law.
Louisiana requires non-competes to be limited in time as described in the statute. The maximum duration depends on the specific circumstances and the statutory requirements.
No. Louisiana does not use an income threshold. Enforceability depends on whether the agreement meets the specific statutory requirements.