Void, with listed exceptions

Non-compete law in Louisiana

La. R.S. 23:921 voids every contract restraining anyone from a lawful profession, trade or business except as the section allows. An employee may agree not to compete with the employer or solicit its customers for up to two years after employment ends, and an independent contractor under a written contract may agree not to compete for up to two years after the last work performed, but only within specified parishes or municipalities and only while the employer carries on a like business there. Other exceptions cover sale of goodwill, partnership dissolution, franchises, shareholder/partner/LLC-member covenants and computer-program work. Special rules limit physician covenants (3-year initial term for primary care, 5 years for others, 2-year/two-contiguous-parish cap on early exit; rural exemptions), ban restraints on automobile salesmen, and from 2026-08-01 ban them for interns and apprentices.

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Employee non-competes
Only within the statute's conditions
Pay floor
None in the statute
Duration
Not to exceed 2 years from termination of employment (independent contractors: 2 years from the date of the last work performed under the written contract), within a specified parish or parishes, municipality or municipalities, or parts thereof, so long as the employer carries on a like business there (R.S. 23:921(C)).

Exceptions and special rules

  • Sale of a business: the statute allows a non-compete given by a seller.
  • Seller of goodwill (including corporation and its shareholders) may agree not to carry on a similar business or solicit customers in specified parishes/municipalities for up to 2 years from the date of sale (R.S. 23:921(B))
  • Partners on or in anticipation of dissolution: up to 2 years from dissolution (R.S. 23:921(E))
  • Franchise: franchisee non-compete during the term and up to 2 years after severance; franchisor employees similarly; franchisor territory covenants (R.S. 23:921(F))
  • Employee/contractor agreement not to work on directly competing confidential computer programs: up to 2 years after termination (R.S. 23:921(G))
  • Corporation shareholders, partnership partners and LLC members may agree not to compete or solicit for as long as the entity carries on a similar business, up to 2 years after ceasing to be shareholder/partner/member (R.S. 23:921(J), (K), (L)); these agreements are void if the members engaged in ultra vires acts (23:921(H))
  • Choice of forum or choice of law clauses in an employee's contract are null and void unless expressly, knowingly and voluntarily agreed to and ratified by the employee after the incident that is the subject of the action (R.S. 23:921(A)(2))
  • Primary care physicians (general family medicine, internal medicine, pediatrics, obstetrics or gynecology). A restraint may not exceed 3 years from the effective date of the initial contract; no noncompete provisions in any later contract. If the physician terminates before the initial 3-year term, restraint limited to the parish of the principal practice and no more than two contiguous parishes where the employer operates a like business (parishes must be specified), for no more than 2 years after termination. (La. R.S. 23:921(M))
  • Physicians other than primary care. Same structure with a 5-year initial term; no noncompete in contracts after the initial 5-year term; early-termination restraint limited to the principal-practice parish plus no more than two contiguous parishes, up to 2 years. (La. R.S. 23:921(N))
  • Physicians employed by or contracted with rural hospitals (R.S. 40:1189.1 et seq.) or federally qualified health centers in rural parishes. Subsections M and N do not apply; subsections C, J, K or L apply instead. (La. R.S. 23:921(O))
  • Automobile salesmen (licensed salesman, other than dealership owners). No contract or provision restraining the salesman from selling automobiles. (La. R.S. 23:921(I))
  • Interns (paid or unpaid; student learners in an authorized work-based learning internship) and apprentices. No contract or provision restraining the intern or apprentice from engaging in a business or employment similar to the employer's, or from pursuing employment, educational or professional opportunities after the internship or apprenticeship; confidentiality, intellectual property and data protection agreements remain enforceable. Effective 2026-08-01 (Act 150 of 2026). (La. R.S. 23:921(P) (2026 Act No. 150 (HB 315)))

Non-solicitation clauses

Handled in the same section and on the same terms as noncompetes: the permitted agreements may include refraining from soliciting customers within the specified parishes or municipalities, for up to 2 years (R.S. 23:921(B), (C), (E), (J)-(L)); there is no separate non-solicit regime.

Contracts naming another state's law

R.S. 23:921(A)(2): employment-contract choice-of-forum and choice-of-law clauses are null and void unless expressly, knowingly and voluntarily agreed to and ratified by the employee after the incident which is the subject of the civil or administrative action.

Remedies

A covered agreement is an obligation not to do; failure to perform may entitle the obligee to damages and lost profit, and on proof of the obligor's failure to perform, without proving irreparable injury, a court shall order injunctive relief enforcing the agreement (R.S. 23:921(H)).

Which agreements it covers

Physician subsections M-O (Act 273 of 2024, effective 2025-01-01) apply to contracts entered into on or after that date; for contracts in existence on that date the 3-/5-year initial term starts running on 2025-01-01 and the geographic limits apply from that date (SB 165 enrolled sec. 2). Subsection P (interns/apprentices) effective 2026-08-01; the Act text states no separate signing-date rule.

Recent changes

  • 2026-08-01. Act No. 150 of 2026 (HB 315) enacted R.S. 23:921(P): no noncompete for interns or apprentices. Official bill page: signed by the Governor 2026-05-15, effective date 08/01/2026. The codified R.S. 23:921 page (snapshot 2026-09-29) did not yet show subsection (P) or the Act in its history line. Source
  • 2025-01-01. Act No. 273 of 2024 (SB 165) enacted R.S. 23:921(M), (N), (O): physician noncompete limits. Source

Primary sources

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