Louisiana Non Compete Law: Is Yours Enforceable? — Best Proven Guide (2026)

Louisiana non compete law restricts non competes by statute: louisiana’s starting rule is that any contract restraining a person from exercising a lawful profession, trade or business is null and void; an employee non compete is allowed only under the statute’s exception — a maximum of two years from termination and only in the parishes or municipalities the agreement lists by name, where the employer actually does business.

Since January 1, 2025 physician non competes are capped at three years of the contract (primary care) or five years (specialists), after which no non compete may be included. This guide gives the exact Louisiana non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one.

Rules verified against the statute on 2026-10-08; confirm the current rule with Louisiana Workforce Commission (no state wage-claim process; claims go to court) or an attorney before you rely on it.

Is a Non Compete Enforceable Under Louisiana Non Compete Law?

Louisiana’s starting rule is that any contract restraining a person from exercising a lawful profession, trade or business is null and void; an employee non compete is allowed only under the statute’s exception — a maximum of two years from termination and only in the parishes or municipalities the agreement lists by name, where the employer actually does business.

Since January 1, 2025 physician non competes are capped at three years of the contract (primary care) or five years (specialists), after which no non compete may be included. The statute is La. Rev. Stat. 23:921.

The carve-outs matter: the agreement must name the parishes or municipalities covered or it fails; primary-care physicians (3-year cap, then no non compete; if they leave earlier, only the home parish plus two contiguous parishes for up to 2 years); other physicians (5-year cap); rural-hospital and loan-repayment physicians exempt (23:921(M)-(O), 2024 SB 165).

Louisiana Non Compete Law at a Glance

Rules verified against the statute on 2026-10-08; confirm the current rule with Louisiana Workforce Commission (no state wage-claim process; claims go to court) or an attorney before you rely on it. The statute row is where to check it yourself.

The Reasonableness Test Under Louisiana Non Compete Law

Louisiana does not use a general “reasonableness” balancing test the way many states do. State law treats any agreement that keeps someone from working in a lawful trade as void, unless the agreement fits one of the narrow exceptions in the statute. Courts read these agreements strictly and in the worker’s favor.

They generally check whether the agreement names the specific parishes or municipalities, whether it stays within the time limit the statute allows, and whether the employer actually does a similar business in those named areas.

Louisiana courts have commonly upheld agreements of up to two years after employment ends that list the covered parishes or municipalities by name and where the employer actually operates. Courts have often struck down agreements that use a mileage radius, say “anywhere the employer does business,” cover the whole state without naming parishes, or run past the time limit the statute allows.

With an overbroad term the court will void unless every statutory condition is met — courts strike unlisted parishes and refuse to extend the two-year cap.

Louisiana Non Compete Law If You Were Fired or Laid Off

The statute permits a non compete when the employment relationship ends, and it does not make an exception based on whether the worker quit or was fired. Louisiana courts have generally enforced valid agreements against workers who were let go as well as those who left, so most workers should assume the agreement still applies after a layoff and confirm with a lawyer.

What the Employer Must Give Under Louisiana Non Compete Law

Louisiana is a civil law state, so it looks for “cause” (a reason for the agreement) rather than common law “consideration.” Louisiana courts have generally treated continued employment as enough support for a non compete signed by a current employee.

Non Solicit and Non Disclosure Agreements Under Louisiana Non Compete Law

An agreement not to solicit the employer’s customers is generally held to the same statutory limits as a non compete, including named parishes and the time cap. Confidentiality and non disclosure agreements are not limited the same way and are generally easier to enforce, and trade secrets are separately protected under Louisiana’s Uniform Trade Secrets Act.

If You Already Signed One: Louisiana Non Compete Law in Practice

Read the agreement closely and check whether it names specific parishes or municipalities and how long it lasts, because agreements missing those details are often not enforceable in Louisiana. Check whether your new job is actually in a named parish and is a business similar to your former employer’s, then consider asking your former employer in writing for a release.

Before turning down an offer, have a Louisiana employment attorney review the agreement, since enforceability depends on its exact wording.

If a valid agreement is broken, Louisiana law lets a court order the worker to stop through an injunction without the employer having to prove irreparable harm. The employer may also seek money damages, and attorney fees may be recoverable if the agreement provides for them.

The Federal Rule and Louisiana Non Compete Law

The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Louisiana non compete law controls. In 2024 Louisiana enacted Act No. 273 (Senate Bill 165), which took effect January 1, 2025 and limits non competes for physicians.

A primary care physician’s non compete expires three years after the contract’s effective date, and other physicians’ non competes expire after five years; physicians employed by or under contract with rural hospitals are exempt.

Other Louisiana Non Compete Law Rules to Know

The agreement must name each parish or municipality where the restriction applies, and courts have generally not accepted a mileage radius or vague wording in place of those names. A clause requiring a Louisiana employee to use another state’s law or courts is generally void unless the worker agreed to it after the dispute arose.

Under the 2025 physician rules, a primary care physician who leaves before the three-year term ends can be restricted only in the parish of their principal practice plus no more than two contiguous parishes, for no more than two years.

Frequently Asked Questions

Are non competes enforceable in Louisiana?

Sometimes. Louisiana’s starting rule is that any contract restraining a person from exercising a lawful profession, trade or business is null and void; an employee non compete is allowed only under the statute’s exception — a maximum of two years from termination and only in the parishes or municipalities the agreement lists by name, where the employer actually does business.

Since January 1, 2025 physician non competes are capped at three years of the contract (primary care) or five years (specialists), after which no non compete may be included.

Is there an income threshold under Louisiana non compete law?

No. Louisiana has no earnings threshold; enforcement turns on whether the agreement is reasonable.

What does a Louisiana court do with an overbroad non compete?

Void unless every statutory condition is met — courts strike unlisted parishes and refuse to extend the two-year cap.

Can my employer enforce a non compete in Louisiana after firing me?

The statute permits a non compete when the employment relationship ends, and it does not make an exception based on whether the worker quit or was fired.

I signed a non compete in Louisiana and have a new offer — what should I do?

Read the agreement closely and check whether it names specific parishes or municipalities and how long it lasts, because agreements missing those details are often not enforceable in Louisiana.

Official Louisiana Sources & Resources

• Louisiana Workforce Commission (no state wage-claim process; claims go to court): https://www.laworks.net/
• Louisiana non compete statute (La. Rev. Stat. 23:921): https://www.legis.la.gov/Legis/Law.aspx?d=84015
• Verified source: https://legis.la.gov/legis/ViewDocument.aspx?d=1375288
• Verified source: https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1357768
• U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
• Federal Trade Commission — the non compete rule (status): ftc.gov
• Louisiana bar lawyer referral: https://www.lsba.org/Public/FindLegalHelp.aspx

This Louisiana non compete law guide was last verified against official Louisiana sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.

More Louisiana Workplace Rights Guides

• Louisiana Final Paycheck Law: Deadlines and Penalties
• Louisiana Wrongful Termination Laws: When a Firing Is Illegal
• Louisiana At Will Employment Law: The Exceptions
• Louisiana Labor Laws: Every Rule in One Place
• Unemployment and Workplace Rights Guides for All 50 States

Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.