Louisiana non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

auto sales, physicians

Statutes and official texts quoted

La. R.S. 23:921(A)(1); La. R.S. 23:921(C); La. R.S. 23:921(B); La. R.S. 23:921(A)(2); La. R.S. 23:921(H); La. R.S. 23:921(I)(1); La. R.S. 23:921(M)(1); La. R.S. 23:921(N)(1); La. R.S. 23:921 (history)

Is a non-compete allowed?

Louisiana voids contracts restraining anyone from exercising a lawful profession, trade, or business, except as provided in the section.

“Every contract or agreement, or provision thereof, by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, except as provided in this Section, shall be null and void.”
La. R.S. 23:921(A)(1)

An employee may agree not to compete or solicit customers within specified parishes or municipalities where the employer carries on a like business, for up to two years after employment ends.

“may agree with his employer to refrain from carrying on or engaging in a business similar to that of the employer and/or from soliciting customers of the employer within a specified parish or parishes, municipality or municipalities, or parts thereof, so long as the employer carries on a like business therein, not to exceed a period of two years from termination of employment.”
La. R.S. 23:921(C)

Health care and other professions

No contract may restrain an automobile salesman from selling automobiles.

“There shall be no contract or agreement or provision entered into by an automobile salesman and his employer restraining him from selling automobiles.”
La. R.S. 23:921(I)(1)

A noncompete restraining a primary care physician may not exceed three years from the initial contract's effective date, and later contracts may not include noncompete provisions.

“Any provision in a contract or agreement which restrains a primary care physician from practicing medicine shall not exceed three years from the effective date of the initial contract or agreement. Any subsequent contract or agreement between the employer and primary care physician executed after the initial three-year term shall not include noncompete provisions.”
La. R.S. 23:921(M)(1)

For other physicians, a noncompete may not exceed five years from the initial contract's effective date, and later contracts may not include noncompete provisions.

“For any physician other than a primary care physician as defined in Subsection M of this Section, any provision in a contract or agreement which restrains the physician from practicing medicine shall not exceed five years from the effective date of the initial contract or agreement.”
La. R.S. 23:921(N)(1)

Exceptions

Sellers of a business's goodwill may agree not to compete within specified parishes or municipalities for up to two years from the sale.

“Any person, including a corporation and the individual shareholders of such corporation, who sells the goodwill of a business may agree with the buyer that the seller or other interested party in the transaction, will refrain from carrying on or engaging in a business similar to the business being sold”
La. R.S. 23:921(B)

If it is challenged

Covered agreements are obligations not to do; on proof of breach, a court shall order injunctive relief without proof of irreparable injury, and damages may be recovered.

“In addition, upon proof of the obligor's failure to perform, and without the necessity of proving irreparable injury, a court of competent jurisdiction shall order injunctive relief enforcing the terms of the agreement.”
La. R.S. 23:921(H)

Which state’s law and court

Choice-of-forum or choice-of-law clauses in employment contracts are null and void unless the employee expressly, knowingly, and voluntarily ratifies them after the incident at issue.

“shall be null and void except where the choice of forum clause or choice of law clause is expressly, knowingly, and voluntarily agreed to and ratified by the employee after the occurrence of the incident which is the subject of the civil or administrative action.”
La. R.S. 23:921(A)(2)

When the rules took effect

The most recent amendment listed is Acts 2024, No. 273, effective January 1, 2025.

“Acts 2024, No. 273, §1, eff. Jan.1, 2025.”
La. R.S. 23:921 (history)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Louisiana rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Louisiana?

Louisiana voids contracts restraining anyone from exercising a lawful profession, trade, or business, except as provided in the section. (La. R.S. 23:921(A)(1)).

Does Louisiana have special non-compete rules for health care workers or other professions?

No contract may restrain an automobile salesman from selling automobiles. (La. R.S. 23:921(I)(1)).