Louisiana has some of the most restrictive non-compete laws in the country. Unlike the majority of states where non-competes are evaluated under a general reasonableness standard, Louisiana has a specific statute — R.S. 23:921 — that sets mandatory requirements for non-compete agreements and voids any agreement that doesn't comply. The result is that non-compete agreements that would be enforced in Texas, Florida, or New York often get thrown out entirely in Louisiana courts. Understanding what the statute requires, what it permits, and how Louisiana courts apply it is essential before you ask anyone to sign a non-compete — or before you sign one yourself.

What Louisiana's Non-Compete Statute Actually Requires

Louisiana Revised Statute 23:921 states that any agreement restricting a person from exercising a lawful profession, trade, or business is null and void — with specific exceptions. The exceptions define the narrow circumstances in which a non-compete is enforceable.

For employee non-competes: the agreement must identify specific parishes, municipalities, or parts thereof where the employee cannot compete. A non-compete that says "within Louisiana" or "within a 50-mile radius" without identifying specific parishes is void. The geographic restriction must also correspond to where the employer actually conducts business. The maximum duration is two years from the date of termination.

The Parish-Specific Requirement: Where Most Non-Competes Fail

The single most common reason Louisiana non-competes are voided is failure to identify specific parishes. Louisiana courts consistently void non-competes that don't meet the geographic specificity requirement — a non-compete signed by a key employee that says "within a reasonable geographic area" or "within the state of Louisiana" gives you nothing enforceable.

The parishes listed must also correspond to where the employer actually conducts business at the time the agreement is signed. Listing parishes where the business doesn't currently operate doesn't make the agreement broader — it makes it more vulnerable to challenge.

Legitimate Business Interests: What You're Actually Protecting

Even a technically compliant Louisiana non-compete can be challenged if it doesn't protect a legitimate business interest. Louisiana courts have recognized several interests that support enforcement: customer relationships where the employee had significant personal contact, trade secrets, and specialized training that gave the employee knowledge unavailable elsewhere.

A non-compete designed to prevent an employee from simply taking a job at a competing company — without any customer relationship or confidential information concern — is more vulnerable than one tied to a specific client base the employee developed.

Non-Solicitation Agreements as an Alternative

Because Louisiana non-competes are so restricted, many Louisiana businesses rely more heavily on non-solicitation agreements — agreements prohibiting the employee or contractor from soliciting the employer's clients or employees after departure, without prohibiting them from working in the industry entirely.

Non-solicitation agreements are not subject to the same geographic specificity requirements as non-competes. They are evaluated under a general reasonableness standard. A well-drafted non-solicitation agreement is usually more enforceable and more practically effective than a non-compete.

Frequently Asked Questions

Q: If an employee signed a non-compete that doesn't comply with Louisiana law, can I still enforce it?

Generally, no. Louisiana courts void non-competes that don't comply with R.S. 23:921 in their entirety — they don't rewrite the agreement to make it enforceable. This is different from many states that apply a 'blue pencil' doctrine to modify overbroad non-competes.

Q: Does a non-compete apply to independent contractors in Louisiana?

Yes, with the same geographic specificity and duration requirements that apply to employees. The statute applies to agreements that restrict any person from exercising a profession, trade, or business — whether the worker is characterized as an employee or contractor.

Q: What happens if I have employees in Louisiana and other states?

Non-compete law is state-specific. For multi-state businesses, agreements should be tailored to each state's law — or the governing law provision should be carefully considered with input from counsel in each relevant state.

Q: Can the non-compete statute be waived by contract?

No. The requirements of R.S. 23:921 are mandatory — they cannot be waived by agreement of the parties. A clause stating that Louisiana's non-compete restrictions do not apply has no legal effect. Louisiana courts enforce the statute regardless of what the contract says about it.

If your business relies on non-compete agreements to protect client relationships and confidential information, schedule a consultation with BLG to make sure those agreements are actually enforceable under Louisiana law.