Occupation limits
Louisiana Non-Compete Law (2026): Valid only if statute-perfect
The starting position in Louisiana is that any restraint on a person's trade or profession is a nullity; non-competes survive only by fitting one of the exceptions the statute itself spells out. Those exceptions run for no more than two years and demand that the covered territory be identified by named parishes or municipalities where the employer does comparable business. Layered on top are outright bans for car salespeople and, since August 2026, interns and apprentices, plus a bespoke regime for physicians that took effect in January 2025.
The rule
How Louisiana treats non-compete agreements
Louisiana's exceptions are read as exclusive, so a covenant that fits none of them fails no matter how modest it looks, and courts are far more willing to strike than to redraw. The physician amendments are unusual in that they reached back and applied to contracts already in force on Jan. 1, 2025.
If you are an employer
Name every parish and municipality by hand, keep the term at or under two years, and re-paper any physician, intern or apprentice agreement, because a covenant that misses a statutory element is void rather than trimmed.
If you are a worker
Pull out your agreement and check three things — whether it names specific parishes, whether it runs past two years, and whether you fall into a protected group such as auto sales, an internship or apprenticeship, or a physician role — since any one failure can sink the whole clause.
| Classification | Enforceable only on strict statutory terms; several occupational carve-outs |
|---|---|
| Pay threshold | None. Louisiana screens by occupation rather than pay: automobile salespersons and, from Aug. 1, 2026, interns and apprentices cannot be bound at all, and physicians face their own separate limits. |
| Maximum term | Two years, measured from separation — a ceiling written into the statute itself and applied to employee, sale-of-business, partnership, franchise, shareholder and LLC-member covenants alike. Physician agreements carry an additional contract-term sunset (3 years primary care, 5 years for other specialties). |
| Notice or consideration | No advance-notice or waiting-period rule. The drafting burden is geographic instead: the agreement must name the parishes or municipalities (or defined portions of them) in which the employer actually conducts a like business. |
| Primary statute | La. R.S. 23:921 (subsections A–P) |
Detail
What has changed, and what is still moving
Legislation 2024–2026
Act 273 of 2024 (SB 165) rewrote the rules for physicians as of Jan. 1, 2025, reaching contracts already on foot. Act 150 of 2026 (HB 315) then closed the door on non-competes for interns and apprentices as of Aug. 1, 2026, while preserving confidentiality, IP and data-protection covenants for those workers.
Bills to watch
No significant restrictive bills pending; the 2026 regular session ended with HB 315 signed into law.
Leading cases
SWAT 24 Shreveport Bossier, Inc. v. Bond, 808 So. 2d 294 (La. 2001) — historically important but superseded on its central point by the 2003 amendment adding La. R.S. 23:921(D). Vartech Systems, Inc. v. Hayden, 951 So. 2d 247 (La. App. 1st Cir. 2006) — illustrates how literally courts read the parish/municipality naming requirement.
If you have one in hand
What can make a non-compete unenforceable in Louisiana
- Your occupation is carved out. Enforceable only on strict statutory terms; several occupational carve-outs
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Louisiana.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Louisiana non-compete questions
Are non-compete agreements enforceable in Louisiana?
The starting position in Louisiana is that any restraint on a person's trade or profession is a nullity; non-competes survive only by fitting one of the exceptions the statute itself spells out. Those exceptions run for no more than two years and demand that the covered territory be identified by named parishes or municipalities where the employer does comparable business. Layered on top are outright bans for car salespeople and, since August 2026, interns and apprentices, plus a bespoke regime for physicians that took effect in January 2025.
How long can a non-compete last in Louisiana?
Two years, measured from separation — a ceiling written into the statute itself and applied to employee, sale-of-business, partnership, franchise, shareholder and LLC-member covenants alike. Physician agreements carry an additional contract-term sunset (3 years primary care, 5 years for other specialties).
Is there a minimum salary for non-competes in Louisiana?
No. Louisiana sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Louisiana require?
No advance-notice or waiting-period rule. The drafting burden is geographic instead: the agreement must name the parishes or municipalities (or defined portions of them) in which the employer actually conducts a like business.
Sources
How this entry was checked
- Primary source. La. R.S. 23:921 (subsections A–P) — the statutory text itself.
- Secondary sources consulted. La. R.S. 23:921 (Louisiana Legislature), Act 273 of 2024 (SB 165), Act 150 of 2026 (HB 315), Ogletree, Epstein Becker Green, Phelps Dunbar, Breazeale Sachse & Wilson, Fair Competition Law.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.