Louisiana has the most prescriptive non-compete law in the United States, governed by La. R.S. § 23:921. The statute sets forth very specific requirements—if an employer fails to follow the statute precisely, the entire non-compete is VOID. There is no blue-pencil reform in Louisiana; courts will not modify terms to save an overly broad agreement. This creates significant protections for workers who know the rules and can spot violations.
Understanding Louisiana’s statutory requirements is critical. An agreement that fails to list specific parishes (counties) or municipalities, or that doesn’t specify a radius in miles from an exact address, is automatically void. Additionally, Louisiana explicitly voids non-competes against employees who are involuntarily terminated.
Key Facts
| Factor | Details |
|---|---|
| Enforceability | Strict statutory (La. R.S. § 23:921); void if non-compliant |
| Max Duration | 2 years (any longer = automatically void) |
| Income Threshold | None (applied to all workers) |
| Blue-Pencil Reform | NO—courts will NOT modify; non-compliant agreements are void |
| Garden Leave | Not required; workers not paid during restriction |
What Makes a Non-Compete Enforceable in Louisiana
Louisiana law requires non-competes to meet VERY SPECIFIC statutory elements:
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Geographic specificity: The agreement MUST list by name the specific parishes and/or municipalities where the restriction applies, OR specify a radius in miles from a specific address (such as the employer’s business location). Vague geographic references like “Louisiana” or “the surrounding area” are VOID.
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Duration: The restriction may last no more than two years. Any non-compete exceeding two years is automatically void.
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Valid interest: The restriction must protect trade secrets, other confidential information, or substantial relationships with prospective or existing customers.
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Reasonableness: The restriction must be reasonable in scope and not unduly burdensome to the employee.
If ANY required element is missing or wrong, the ENTIRE agreement is VOID. Courts will not fix a defective geographic description or add missing terms. The employer must draft precisely or lose the agreement entirely.
Income Thresholds and Worker Exemptions
Louisiana has no income threshold. However, non-competes are absolutely VOID against employees who are involuntarily terminated (La. R.S. § 23:921(C)). If you are laid off, fired, or terminated without cause, any non-compete you signed is unenforceable, regardless of its terms. This is a powerful protection.
An involuntary termination includes being laid off, fired, or terminated without cause. Being asked to resign (without redundancy or severance) may also qualify as involuntary, depending on the circumstances.
What Happens If You Violate One
If you violate a non-compete that meets all of Louisiana’s statutory requirements, your former employer can seek an injunction and sue for damages. Louisiana courts may award lost profits, customer losses, breach-of-contract damages, and attorney fees.
However, Louisiana’s strict statutory approach provides significant defenses. If the agreement fails to meet even ONE statutory requirement—geographic description, duration limit, valid interest, or reasonableness—the entire agreement is void and you are free to work. Additionally, if you were involuntarily terminated, the non-compete is void regardless of its terms.
Real Situations in Louisiana
A software developer in New Orleans signed a non-compete prohibiting work for any competitor “in Louisiana” for two years. When she left to join a rival firm in New Orleans, the employer sued. The non-compete was void because the geographic description did not meet Louisiana’s statutory requirements. “Louisiana” alone is too vague; the agreement must list specific parishes and/or municipalities (e.g., “Orleans Parish, Jefferson Parish, and St. Tammany Parish”) or specify a radius from an address (e.g., “within 10 miles of 123 Main Street, New Orleans, LA”). The court voided the entire non-compete. The developer was free to work.
An insurance agent in Baton Rouge signed a non-compete prohibiting work as an insurance agent “within 15 miles of the employer’s office” for three years. Two years after signing, he was laid off in a round of corporate downsizing with no severance or transition pay. He immediately took a position with a rival agency 10 miles away. The employer sued. The non-compete was void for two reasons: (1) the three-year duration exceeded Louisiana’s two-year maximum, and (2) he was involuntarily terminated, which voids any non-compete under La. R.S. § 23:921(C). The agent was free to work.
A pharmaceutical sales representative in Lafayette signed a non-compete that specified “all parishes in South Louisiana” (a colloquial regional term, not a statutory list of parishes). The agreement prohibited work for rival pharmaceutical companies for two years. When she left, the employer sued to enforce the agreement. The court found the geographic description defective—“South Louisiana” is not a specific list of parishes. The agreement failed Louisiana’s statutory requirement for geographic specificity. The entire non-compete was void.
Common Mistakes Louisiana Employees Make
Not checking for geographic specificity: Louisiana requires either a specific list of parishes/municipalities or a radius from an address. If the non-compete uses vague language like “Louisiana,” “the area,” or “surrounding region,” it’s VOID. Check the agreement carefully and challenge it if geographic terms are imprecise.
Forgetting the involuntary termination protection: If you are laid off, fired, or terminated without cause, your non-compete is void under La. R.S. § 23:921(C), regardless of other terms. Do not hesitate to seek new employment if you are involuntarily separated.
Not recognizing the two-year maximum: Any non-compete lasting more than two years is automatically void in Louisiana. If your agreement says three years, five years, or “indefinitely,” it violates the statute and is void entirely.
What to Do If You Have a Non-Compete
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Obtain a copy and examine the geographic description extremely carefully. Does it list specific parishes and municipalities by name? Or does it specify a radius in miles from a specific address? If it uses vague language like “Louisiana” or “surrounding area,” the agreement is VOID.
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Check the duration. If the non-compete lasts more than two years, it is automatically void under Louisiana law. No exceptions.
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If you have been involuntarily terminated, the non-compete is void. You are free to work immediately. Document the separation as involuntary (layoff, termination without cause, or forced resignation).
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Consult a Louisiana employment attorney if you’re unsure about compliance. An attorney can quickly assess whether the non-compete meets all statutory requirements. If it doesn’t meet even one requirement, it’s void.
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If the employer threatens enforcement of a defective non-compete, respond firmly. You can assert the non-compliance as a defense and counter-sue for attorney fees if the employer initiates litigation.
Louisiana Workforce Commission: www.lwc.louisiana.gov
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Disclaimer
This article provides general information about non-compete laws in Louisiana and is not a substitute for legal advice. Employment law is complex and varies by situation. If you face a non-compete dispute, consult a qualified employment attorney licensed in Louisiana who can review your specific agreement and circumstances.