Are Non-Competes Enforceable in Louisiana?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable — statute sets rules
Void unless it lists parishes; 2-year maximum
Louisiana voids agreements restraining a lawful profession, trade or business except as its statute allows. An employee (or independent contractor) may agree not to compete with the employer or solicit its customers only within specified parishes or municipalities where the employer does a like business, and for no more than two years after leaving. Courts strictly construe these covenants. Separate rules limit physician covenants, ban them for car salesmen, and from August 1, 2026 ban them for interns and apprentices.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
Louisiana enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- Louisiana: Void unless it lists parishes; 2-year maximum. La. R.S. 23:921
- Duration: 2 years from termination (contractors: 2 years from the last work). La. R.S. 23:921
Other Louisiana rules to check
- Notice and timing: The covenant must name the specific parishes or municipalities covered.
- Non-solicitation clauses: Customer non-solicits are subject to the same parish-list and 2-year limits.
- Choice of law and venue: Choice-of-forum and choice-of-law clauses in an employee's contract are void unless the employee expressly ratifies them after the dispute arises.
- If a court finds it too broad: Courts may strike overbroad words (blue pencil) but won't rewrite.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Louisiana non-compete rules
- Statute
- La. R.S. 23:921
- Independent contractors
- Covered by the statute.
- Duration
- 2 years from termination (contractors: 2 years from the last work)
- Notice and timing
- The covenant must name the specific parishes or municipalities covered.
- Non-solicitation
- Customer non-solicits are subject to the same parish-list and 2-year limits.
- Choice of law / venue
- Choice-of-forum and choice-of-law clauses in an employee's contract are void unless the employee expressly ratifies them after the dispute arises.
- Overbroad covenants
- Courts may strike overbroad words (blue pencil) but won't rewrite
Profession-specific rules
- LimitedPrimary-care physicians: a non-compete may not run more than 3 years from the initial contract (5 years for other physicians), later contracts may not add one, and if the physician leaves earlier the restriction is limited to the parish of principal practice plus up to 2 contiguous parishes for 2 years or less. Physicians at rural hospitals and rural FQHCs are exempt. (effective January 1, 2025) La. R.S. 23:921(M)-(O) (Act 273 of 2024)
- VoidNo contract may restrain a licensed automobile salesman (without a dealership ownership interest) from selling automobiles. La. R.S. 23:921(I)
- VoidNon-competes with interns and apprentices are prohibited (confidentiality and IP agreements still allowed). (effective August 1, 2026) Act 150 of 2026 (HB 315)
- LimitedAn employee or contractor may agree not to write or implement a computer program that directly competes with a confidential employer program they accessed, for up to 2 years. La. R.S. 23:921(G)
Recent and pending changes
- August 1, 2026: Act 150 of 2026 (HB 315, signed May 15, 2026): intern and apprentice non-compete ban. HB 315 (2026) bill info
- January 1, 2025: Act 273 of 2024 (SB 165): physician non-compete time and geographic limits, applied to existing contracts with terms counted from this date. Act 273 of 2024
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Louisiana?
Void unless it lists parishes; 2-year maximum. Louisiana voids agreements restraining a lawful profession, trade or business except as its statute allows. An employee (or independent contractor) may agree not to compete with the employer or solicit its customers only within specified parishes or municipalities where the employer does a like business, and for no more than two years after leaving. Courts strictly construe these covenants. Separate rules limit physician covenants, ban them for car salesmen, and from August 1, 2026 ban them for interns and apprentices.
How long can a non-compete last in Louisiana?
2 years from termination (contractors: 2 years from the last work)
Did the FTC ban non-competes in Louisiana?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable — statute sets rules): Alabama, Arkansas, Florida, Georgia, Hawaii, Idaho, Michigan, North Carolina
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Louisiana? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Louisiana.