Employers nationwide use noncompete contracts (also called restrictive covenants) to prevent employees, who quit or who are terminated, from working for a competitor or starting a competing business. Noncompete agreements are designed to help companies limit the ability of a former manager, employee, or other person with a special relationship to the company from competing with the company in business.
However, Louisiana statutory law (R.S. 23:921) and the case law interpreting it strictly control the enforceability of noncompete agreements within Louisiana. Noncompete agreements are disfavored in Louisiana because those agreements tend to prevent an individual from "exercising a lawful profession, trade or business of any kind." Because of this, noncompete contracts in Louisiana are unenforceable unless they meet the strict exceptions provided for by Louisiana law.
Whether you are an employer interested in issuing a noncompete contract or an individual being asked to sign one, it is always a wise decision to have a knowledgeable employment law attorney, such as Mr. Landry review the written agreement.
At the law firm of Robert B. Landry III PLC, we assist both employers and employees in drafting, enforcing or disputing noncompete employment agreements. We also review and negotiate executive contracts.
Knowledgeable Legal Counsel Regarding Executive Contracts
In today's competitive business environment, companies often seek to recruit and retain high-level executives with enticing "extras" built into complex contracts. These may include performance bonuses, stock options, partnership stakes and severance packages. However, they can also include noncompete restrictions or forfeiture clauses that are important to fully understand before an individual agrees to the terms of the contract.
We have extensive experience negotiating, drafting, enforcing and terminating employment contracts and separation agreements with employers. Take the preventative step. It is significantly cheaper to review a contract before it is signed than it is to litigate after the fact.
Contact us if you have been asked to sign an executive contract or a noncompete agreement. Our employment lawyer works with clients in Baton Rouge, New Orleans, Lafayette, and throughout the region.