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Louisiana Non-Compete Agreement

Louisiana enforces employee non-competes only if they name specific parishes and last no more than two years under La. R.S. 23:921. Attorney review available.

Introduction

A non-compete agreement asks a departing employee to stay out of a competing business for a while, and Louisiana enforces one only when it names the specific parishes or municipalities where the employer operates and runs no longer than two years. Louisiana allows an employee non-compete, but only under strict conditions, because the state disfavors these restraints as a matter of public policy. Under La. R.S. 23:921(A)(1), every agreement that restrains someone from exercising a lawful profession, trade, or business is null and void except as the statute allows. The main employee exception is subsection C: an employer and employee may agree that the employee will refrain from a similar business within a specified parish or parishes, municipality or municipalities, or parts thereof, so long as the employer carries on a like business there, for no more than two years from the end of employment. The named-geography requirement is unforgiving. A clause that just says the state of Louisiana, or that uses only a mileage radius, or that covers places where the employer does not operate, is generally unenforceable. Louisiana also voids a clause that forces a Louisiana employee to litigate under another state's law unless the employee ratifies it after a dispute arises (Section 23:921(A)(2)), and it bars any non-compete against an automobile salesman (Section 23:921(I)). There is no salary threshold. Louisiana courts strictly construe these agreements and generally will not rewrite an overbroad one to save it. Employers often pair the non-compete with a confidentiality agreement under the Louisiana Uniform Trade Secrets Act. This page explains Louisiana's rule and offers a template scoped to those limits. It is a state-law overview, not a promise that any given clause will hold up.

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Key Things to Know

  1. 1

    A non-compete agreement is a contract in which one party, usually an employee, agrees not to compete with a business for a set time and area after the relationship ends. In Louisiana an employee non-compete is enforceable only if it strictly fits La. R.S. 23:921.

  2. 2

    Louisiana disfavors non-competes: under La. R.S. 23:921(A)(1) every agreement restraining a lawful profession, trade, or business is null and void except as the statute allows, so the burden is on the employer to fit an exception and courts read them narrowly.

  3. 3

    Louisiana has no salary or income threshold for a non-compete. Validity turns on the structure of the clause, the named geography and the two-year cap, not on how much the employee earns. Do not import any other state's wage floor.

  4. 4

    An employee non-compete may not exceed two years from termination of employment, and it must name the specific parish or parishes, municipality or municipalities, or parts thereof where the employer carries on a like business (La. R.S. 23:921(C)). A statewide or radius-only restriction generally fails.

  5. 5

    Louisiana sets no statutory advance-notice period before signing, and courts in Louisiana generally treat entering into or continuing at-will employment as sufficient consideration, though this rests on case law and should be confirmed for your situation.

  6. 6

    Louisiana bars any non-compete against an automobile salesman (La. R.S. 23:921(I)), and its courts strictly construe these clauses and generally will not blue-pencil or rewrite an overbroad restriction to make it enforceable.

  7. 7

    Because a Louisiana non-compete is enforceable only within these narrow limits, employers commonly protect confidential information with a confidentiality or non-disclosure agreement under the Louisiana Uniform Trade Secrets Act (La. R.S. 51:1431 et seq.) instead of relying on the non-compete alone.

Key decisions before you file

Before you file a Non-Compete Agreement in Louisiana, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.

Open the Non-Compete Agreement guide

Customize your Non-Compete Agreement Template with DocDraft

LOUISIANA EMPLOYEE NON-COMPETE AGREEMENT (Drafted to La. R.S. 23:921(C): named parishes, two-year maximum)

IMPORTANT LOUISIANA NOTICE: Louisiana disfavors non-competes. Under La. R.S. 23:921(A)(1) this restraint is null and void unless it fits the statute. To be enforceable it MUST name the specific parishes or municipalities where the Employer carries on a like business and MUST NOT exceed two years from termination. A statewide or radius-only clause generally fails. This template does not apply to an automobile salesman (Section 23:921(I)). Consider pairing it with a confidentiality agreement under the Louisiana Uniform Trade Secrets Act.

  1. PARTIES. This Non-Compete Agreement is made on [DATE] between [EMPLOYER NAME] (Employer) and [EMPLOYEE NAME] (Employee).

  2. CONSIDERATION. The Employee enters into this agreement in consideration of [EMPLOYMENT OR CONTINUED EMPLOYMENT AND ACCESS TO CONFIDENTIAL INFORMATION]. The parties acknowledge the Employer carries on business in the parishes named below.

  3. COVENANT NOT TO COMPETE. For a period of [UP TO TWO YEARS] after the termination of employment, the Employee will not carry on or engage in a business similar to that of the Employer, and will not solicit the Employer's customers, within the following specified areas where the Employer carries on a like business: [LIST EACH PARISH AND/OR MUNICIPALITY, e.g. the Parish of Orleans, the Parish of Jefferson, the City of Baton Rouge]. This covenant is limited to those named areas as required by La. R.S. 23:921(C).

  4. TWO-YEAR LIMIT. This covenant is effective only while the Employer carries on a like business in the named areas and in no event longer than two years from the date employment ends.

  5. CONFIDENTIALITY AND TRADE SECRETS. The Employee will not use or disclose the Employer's confidential information or trade secrets, consistent with the Louisiana Uniform Trade Secrets Act (La. R.S. 51:1431 et seq.). This obligation is independent of the covenant above and is not limited to the named parishes, and it continues after employment ends regardless of the reason for separation.

  6. RETURN OF MATERIALS. On termination the Employee will promptly return all of the Employer's property, records, customer lists, and confidential materials, in every format, and will keep no copies. This duty stands apart from the two-year covenant and does not depend on the named-parish limits.

  7. GOVERNING LAW. This agreement is governed by Louisiana law. Any choice-of-law or choice-of-forum term is subject to La. R.S. 23:921(A)(2). If any parish, term, or provision exceeds what Section 23:921 permits, the parties intend the remainder to be severed and enforced to the extent the statute allows.

[EMPLOYER NAME] [EMPLOYEE NAME]

Signature and date Signature and date

Note: Louisiana enforces an employee non-compete only if it names the specific parishes or municipalities where the employer carries on a like business and lasts no more than two years (La. R.S. 23:921(C)). There is no salary threshold, courts strictly construe these clauses and generally will not rewrite an overbroad one, and a clause against an automobile salesman is prohibited (Section 23:921(I)). Confirm the named geography matches where the employer actually operates before using this in Louisiana. For the generic template and other states, see the full Non-Compete Agreement template hub.

Louisiana Requirements for Non-Compete Agreement

Enforceable Only Within the Statute

Louisiana disfavors non-competes. Under La. R.S. 23:921(A)(1) every agreement restraining a lawful profession, trade, or business is null and void except as the statute allows, so an employee non-compete is enforceable only if it strictly fits an exception. The employer carries the burden of compliance and Louisiana courts read these clauses narrowly against enforcement.

Two-Year Maximum Duration

An employee non-compete in Louisiana may not exceed two years from the termination of employment (La. R.S. 23:921(C)). The two-year clock runs from the end of the working relationship, and the covenant is effective only while the employer carries on a like business in the covered areas. A longer or open-ended term generally voids the clause.

Named-Parish Geographic Requirement

The agreement must name the specific parish or parishes, municipality or municipalities, or parts thereof where the employer carries on a like business (La. R.S. 23:921(C)). A clause that just says the state of Louisiana, uses only a mileage radius, or lists areas where the employer does not operate is generally unenforceable. Enumerate each covered parish or municipality.

No Salary or Income Threshold

Louisiana has no wage or income threshold that makes a non-compete valid. Validity turns on structure, the named geography and the two-year cap, not on the employee's compensation (La. R.S. 23:921(C)). Do not substitute another state's salary figure when the worker is in Louisiana; income level is not part of the Louisiana test.

Consideration and No Notice Period

Louisiana sets no statutory advance-notice period before signing a non-compete. Courts in Louisiana generally treat entering into or continuing at-will employment, together with access to the employer's confidential information, as sufficient consideration, though this rests on case law rather than statute and should be confirmed for the specific situation.

Out-of-State Law Clauses Are Void

A choice-of-law or choice-of-forum clause that would apply another state's law to a Louisiana employee is null and void under La. R.S. 23:921(A)(2) unless the employee expressly, knowingly, and voluntarily agrees to it and ratifies it after the dispute arises. An employer cannot use a friendlier state's rules to enforce a non-compete that would fail under Louisiana law.

No Blue-Pencil; Auto-Salesman Carve-Out

Louisiana courts strictly construe non-competes and generally will not rewrite an overbroad clause to save it, though a severability clause may let a court sever an invalid parish or term and enforce the rest. Louisiana separately prohibits any non-compete against an automobile salesman (La. R.S. 23:921(I)).

Protect Trade Secrets Alongside

Because a Louisiana non-compete is enforceable only within narrow limits, employers commonly pair it with a confidentiality or non-disclosure agreement under the Louisiana Uniform Trade Secrets Act (La. R.S. 51:1431 et seq.). That protects trade secrets and customer data without the parish-by-parish and two-year constraints, and its obligations are not limited to the named areas.

Frequently Asked Questions

Yes, but only within strict limits. La. R.S. 23:921(A)(1) makes every agreement that restrains a lawful profession, trade, or business null and void except as the statute allows. An employer-employee non-compete is enforceable under subsection C only if it names the specific parish or parishes, municipality or municipalities, or parts thereof where the employer carries on a like business and lasts no more than two years from termination. A clause that misses those requirements is generally void in Louisiana.

No more than two years from the termination of employment. La. R.S. 23:921(C) caps an employee non-compete at two years, and Louisiana courts will not extend it. The two-year clock runs from the end of the working relationship, and the restriction must also be confined to the named parishes or municipalities where the employer does business. A term longer than two years, or one that is open-ended, generally makes the clause unenforceable in Louisiana.

Only the specific parish or parishes, municipality or municipalities, or parts thereof where the employer actually carries on a like business (La. R.S. 23:921(C)). Louisiana requires the geography to be enumerated. A clause that simply says the state of Louisiana, that relies only on a mileage radius, or that lists areas where the employer does not operate is generally unenforceable because it does not track the statute's parish-by-parish requirement.

No. Louisiana has no wage or income threshold that a worker must earn before a non-compete can apply. Unlike states that only permit non-competes above a salary floor, Louisiana validity turns entirely on structure: the named parishes or municipalities and the two-year cap under La. R.S. 23:921(C). Do not rely on another state's salary figure when the worker is in Louisiana; income level is simply not part of the Louisiana test.

Generally no. Louisiana courts strictly construe non-competes and typically will not blue-pencil or judicially narrow an overbroad clause to make it enforceable. If the agreement includes a severability clause, a court in Louisiana may sever an invalid parish or provision and enforce the remainder, but it will not expand or rewrite the terms. Because a single defective term can void the restraint, precise drafting to La. R.S. 23:921 matters in Louisiana.

Usually not. La. R.S. 23:921(A)(2) makes a choice-of-law or choice-of-forum clause in a Louisiana employee's contract null and void unless the employee expressly, knowingly, and voluntarily agrees to it and ratifies it after the dispute arises. This stops an employer from using a more employer-friendly state's rules to enforce a non-compete that would fail under Louisiana law against a Louisiana worker.

They use a confidentiality or non-disclosure agreement and rely on the Louisiana Uniform Trade Secrets Act (La. R.S. 51:1431 et seq.), which lets a business protect and sue over the misuse of trade secrets and confidential information. This approach guards customer data and proprietary information without the parish-by-parish and two-year constraints that limit a non-compete, so many Louisiana employers use both tools together.

No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, Louisiana non-competes are governed by La. R.S. 23:921, so the federal rule's fate does not change how a Louisiana employee non-compete is analyzed today.