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Can I require employees to sign non-compete agreements in Louisiana? What are the requirements?
Yes, Louisiana law allows non-compete agreements, but there are specific requirements that must be met.
Requirements for Non-Compete Agreements in Louisiana
- Consideration: The employee must receive something of value in exchange for signing the non-compete agreement, such as a job offer, a promotion, or access to confidential information.
- Time and Scope: The non-compete agreement must be reasonable in terms of time and scope. The time period and geographic area must be limited to what is necessary to protect the employer’s legitimate business interests.
- Legitimate Business Interest: The non-compete agreement must be designed to protect the employer’s legitimate business interests, such as trade secrets, confidential information, or customer relationships.
- Notice: The employee must be given notice of the non-compete agreement before or at the time of employment.
- Writing: The non-compete agreement must be in writing and signed by both the employer and the employee.
However, it is important to note that Louisiana law provides exceptions to non-compete agreements for certain professions, including doctors, lawyers, and broadcasters. Additionally, non-compete agreements cannot be used to prevent an employee from working in a job that does not compete with the employer’s business. [6.1]
Source(s):
Jurisdiction
Louisiana