Are Non-Competes Enforceable in Louisiana? Your Rights Explained

In Louisiana, non-compete agreements are presumed null and void as a matter of public policy unless they fit narrow statutory exceptions. The controlling law, Louisiana Revised Statutes section 23:921 (La. R.S. 23:921), declares that any contract restraining someone from "exercising a lawful profession, trade, or business" is void by default. To be enforceable, a non-compete must name the specific parishes or municipalities (or parts of them) where competition is restricted, the employer must actually carry on a like business there, and the restriction may last no more than two years from the end of employment. A non-compete that fails any of these requirements is generally unenforceable in Louisiana courts.

Louisiana's Default Rule: Non-Competes Are Disfavored

Unlike states that broadly enforce reasonable non-competes, Louisiana starts from the opposite premise. The legislature has long treated agreements that keep people from earning a living as contrary to public policy. Courts in Louisiana strictly construe non-compete agreements against the party trying to enforce them, and any ambiguity is typically resolved in favor of the employee. This means even a small drafting error or a missing requirement can render the entire agreement void.

California, North Dakota, Oklahoma, and Minnesota go further and ban most employee non-competes outright. Louisiana does not impose a total ban, but its statute is restrictive enough that many agreements drafted by out-of-state employers do not hold up here.

The Specific Requirements Under La. R.S. 23:921

For a Louisiana non-compete to be enforceable, it must satisfy each of the following:

• Geographic specificity. The agreement must list the parishes, municipalities, or parts of them where the restriction applies. A vague clause that just says "anywhere the company does business" or covers the entire state without specifics is frequently struck down. Some courts allow a clear method of identifying the parishes, but the safest agreements list them by name.
• The employer must operate there. The employer has to actually carry on a similar business in the parishes or municipalities listed. You cannot be barred from competing in a place where your former employer does not operate.
• Two-year maximum. The restriction may last no longer than two years from the date employment ends. A clause attempting to bind you for three, five, or ten years exceeds the statutory limit.
• It must fall within a recognized category. The statute authorizes non-competes in specific contexts, including the sale of a business, dissolution of a partnership, between an employer and employee, and in certain franchise and LLC-member relationships.

Because Louisiana courts read this statute narrowly, an agreement that overreaches on geography or duration is at serious risk of being declared void.

Reformation: Can a Court Fix a Bad Clause?

Louisiana law gives courts some flexibility. Under La. R.S. 23:921, a court that finds part of a non-compete unenforceable may reform the agreement to make the offending provision comply with the law, rather than throwing out the whole contract. For example, a court might narrow an overly broad geographic scope. However, reformation is not guaranteed, and many Louisiana decisions have voided agreements entirely where the defects were fundamental. You should never assume a flawed non-compete will simply be "fixed" against you.

Non-Solicitation and Confidentiality Are Treated Differently

The statute also reaches non-solicitation agreements that prevent you from soliciting your former employer's customers. These are subject to similar requirements, including the two-year limit and geographic specificity. By contrast, genuine confidentiality and trade-secret protections that simply stop you from disclosing proprietary information are generally enforceable and are not treated as restraints on your right to work, as long as they are not disguised non-competes.

Low-Wage Workers and Recent Developments

Louisiana does not currently have a separate statutory wage-based exemption that automatically voids non-competes for low-wage or hourly workers the way some states (such as Illinois, Washington, and Oregon) do. The protections in La. R.S. 23:921 apply broadly regardless of income, which already makes Louisiana less hospitable to non-competes than many states. The legislature periodically considers amendments to section 23:921, and specialized rules exist for certain professions (for example, physicians and automobile salespersons have their own provisions). Because the statute is amended from time to time, you should confirm the current text before relying on it.

At the federal level, the Federal Trade Commission issued a rule in 2024 that would have banned most non-competes nationwide, but that rule was blocked by federal courts and did not take effect. As a result, your rights in Louisiana continue to be governed primarily by state law under La. R.S. 23:921. There is no general federal statute making non-competes enforceable or unenforceable; the closest federal baseline workers encounter is the Fair Labor Standards Act (FLSA), which sets a $7.25 federal minimum wage and a 40-hour weekly overtime threshold but does not address non-competes.

Note that Louisiana has no state minimum wage law of its own, so the federal FLSA rate of $7.25 per hour applies in Louisiana as of 2026. Always confirm the current figure with the U.S. Department of Labor or the Louisiana Workforce Commission, as rates and rules can change.

What to Do If You Are Asked to Sign or Are Being Threatened

• Read it carefully before signing. Check whether it names specific parishes, how long it lasts, and what activities it restricts. If it lacks parish-level geography or exceeds two years, it may already be unenforceable.
• Do not assume it is valid just because you signed it. Louisiana courts void defective non-competes regardless of your signature. Signing does not waive the statute's requirements.
• Keep your copy and document everything. Save the agreement, your offer letter, and any communications where the employer threatens enforcement.
• Get a Louisiana employment attorney. Because reformation and strict construction make these cases fact-specific, a lawyer licensed in Louisiana can assess whether your particular agreement survives under La. R.S. 23:921. Many offer initial consultations, and the Louisiana State Bar Association runs a lawyer referral service.
• Be cautious about a new job in a listed parish. If a valid agreement names parishes where you plan to work, talk to counsel first about your exposure.

Where to Verify Louisiana's Rules

For the authoritative statute, read La. R.S. 23:921 directly through the Louisiana State Legislature's website, which publishes the current Revised Statutes. For wage, hour, and general workplace questions, the Louisiana Workforce Commission (LWC) is the state agency overseeing labor matters. For federal wage and overtime standards, consult the U.S. Department of Labor Wage and Hour Division. Because non-compete disputes turn on the precise wording of your contract and the latest version of the statute, treat this article as general information and verify the current law before acting.

Official Louisiana Sources

This page is based on Louisiana employment law. Rules and figures change — verify the current details directly with the official Louisiana sources below. This is general legal information, not legal advice.

• Louisiana Workforce Commission — official Louisiana agency.
• Report Louisiana Labor Law Violations
• Louisiana Revised Statutes Title 23 — Labor and Worker's Compensation

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Louisiana state law.