Louisiana Noncompetition Agreement Between Employee and Company

State:
Multi-State
Control #:
US-OG-208
Format:
Word; 
Rich Text
Instant download

Description

A non-compete agreement is a promise by an employee not to compete with his or her employer for a specified time in a particular place. The agreement may cover such actions, among others, as opening a competiting business or using customer information for business leads.

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FAQ

It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

Louisiana is an employment at-will state. This rule is found in Article 2747 of the Louisiana Civil Code which says, a man is at liberty to dismiss a hired servant attached to his person or family, without assigning any reason for so doing. The servant is also free to depart without assigning any cause.

Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.

compete agreement legally binds a current or former employee from competing with an employer for some period of time after employment ceases. Under such an agreement, the employee must not reveal any trade secrets learned during employment.

compete agreement, or a covenant not to compete, is a contract that companies ask employees to sign to protect their corporate interests. Violations can mean facing possible litigation.

In California, Montana, and North Dakota, the blue pencil rule is not applicable. In District of Columbia, Louisiana, Maryland, Hawaii, New Mexico, Rhode Island, South Dakota, and Utah, the approach to the blue pencil covenant is unclear.

compete agreement is a written legal contract between an employer and an employee. The noncompete agreement lays out binding terms and conditions about the employee's ability to work in the same industry and with competing organizations upon employment termination from the current employer.

In short, Louisiana law on non-compete agreements cannot be avoided for outsiders seeking to do business in Louisiana. The validity of non-compete agreements in Louisiana is strictly controlled by a single statutory provision (La. R.S. 1) and its judicial interpretation.

Yes. If the non-compete agreement is between one of the eight relationships listed in the law, an enforceable non-compete agreement in Louisiana can be for no longer than two years from date of termination of the relationship. It can be shorter, but it cannot be any longer than two years.

Beginning August 1, 2020, Louisiana's recently revised non-compete law permits a corporation, partnership, or limited liability company to enter into agreements with their shareholders, partners, and members, respectively, that prevent them from becoming employees of a competing company under certain conditions.

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Louisiana Noncompetition Agreement Between Employee and Company