Louisiana Court Rules Employee Nonsolicitation Agreements Are Not Governed by Noncompete Law, but Duration Must Be Limited
Louisiana noncompete agreements must comply with a statute—La. R.S. 23:921—to be enforceable. Does this statute also apply to employee nonsolicitation—or “anti-poaching”—agreements? A Louisiana appellate court recently held it does not, but such agreements must nevertheless be reasonable in scope and duration. Quick Hits A Louisiana appellate court held that the state’s noncompete statute did not apply to employee nonsolicitation agreements, but such agreements must nevertheless “be reasonable in scope and duration.” The court found that the nonsolicitation provision at issue was void of any indication as to the duration of the prohibition, implying an infinite duration. The court’s refusal to reform the agreement aligns with state case law exhibiting hostility to contractual limits on a former employee’s freedom to compete with his or her former employer. While noncompete agreements prohibit employees from working for a competitor after leaving their former employer, employee no...