Louisiana: Updates to Employee Noncompete Agreements

APPLIES TO

All Employers with LA Employees

EFFECTIVE

August 1, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Noncompete agreements are prohibited in Louisiana unless certain exceptions are met. For employers, an agreement that restricts employees “from carrying on or engaging in a business similar to that of the employer” and/or “from soliciting customers of the employer” is permitted, but only: (1) within an expressly identified territory consisting of specified parish(es), municipalit(ies), or their parts, provided that the employer engages in a like business there, and (2) not exceeding a period of two years from termination of employment.

Additionally, a corporation, partnership, or limited liability company may enter into agreements with their shareholders, partners, and LLC members to restrict them from taking equity stakes in a competing business (as shareholders, partners, or members) and/or merely becoming employees with the competing business.

Action Items

  1. Have noncompete agreements reviewed by legal counsel for compliance.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

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