Andrew Burnside on Non-Compete Agreements

Prospective Employees May Sign Louisiana Noncompete Agreements if They Contain an Effective Date During Employment

A recent opinion, Arthur J. Gallagher & Co. v. Annison, from the Louisiana Court of Appeal, First Circuit, applied Louisiana’s restrictive law governing noncompete agreements to explain that a prospective employee may sign a...more

11/13/2024 / Contract Terms , Effective Date , Employment Contract , Employment Litigation , Non-Compete Agreements , Restrictive Covenants , State Labor Laws

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...more

11/6/2024 / Contract Term , Contract Terms , Employment Contract , Employment Litigation , Non-Compete Agreements , Non-Solicitation Agreements , Reformation , Restrictive Covenants , State Labor Laws

Louisiana Institutes New Restrictions on Noncompete Agreements for Primary Care Physicians

The Louisiana Legislature recently unanimously passed Act No. 273, which limits noncompete agreements for physicians in the state. The act requires all applicable new noncompete agreements to sunset after three years for...more

6/27/2024 / Contract Terms , Employment Contract , Hospitals , New Legislation , Non-Compete Agreements , Physicians , Restrictive Covenants , Service Contracts

Louisiana Court Rules Restrictive Covenant Is Unenforceable and Can’t Be Saved by Reformation

Louisiana regulates noncompete agreements by statute. The statute declares that a noncompete is invalid unless the agreement complies with at least one of several exceptions based on the type of relationship. ...more

5/10/2023 / Contract Terms , Employment Contract , Non-Compete Agreements , Reformation , Restrictive Covenants , Unenforceable Contract Terms

Louisiana Restrictive Covenant Signed by C-Suite Employee After Termination Is Unenforceable, State Appeals Court Holds

In Louisiana, restrictive covenants—known locally as “no competes”—are unenforceable by statutory default. The applicable statute declares, “Every contract or agreement, or provision thereof, by which anyone is restrained...more

1/4/2023 / C-Suite Executives , Employment Contract , Employment Litigation , No-Hire/No-Solicitation Agreements , Non-Compete Agreements , Restrictive Covenants , Severance Agreements , Termination , Unenforceable Contract Terms

A Lesson from the Fifth Circuit About Louisiana Noncompete Agreements: Establish the Employment Relationship First

A recent opinion from the United States Court of Appeals for the Fifth Circuit applying Louisiana’s restrictive law governing noncompetition agreements, reminds employers of the importance of establishing an employee-employer...more

6/21/2022 / Employer Liability Issues , Job Applicants , Non-Compete Agreements , Restrictive Covenants , Unenforceable Contract Terms

Louisiana Appellate Court Reminds Employers of the Strict Rules for Enforceable Noncompete Agreements

Advanced Medical Rehab, L.L.C. (AMR), is a marketing company that represents several medical clinics in Louisiana and markets the medical services of those clinics to personal injury law firms. When AMR learned that Shelby...more

3/21/2022 / Contract Terms , Employer Liability Issues , Non-Compete Agreements , Restrictive Covenants , Unenforceable Contract Terms , Unfair Trade Practices Act

Louisiana Court Upholds Ruling Allowing for the Reformation of a Noncompetition Agreement

The Louisiana Second Circuit Court of Appeal recently held that a noncompetition provision under La. R.S 23:921 affecting a former member of an accounting limited liability company (LLC) could be reformed when the scope of...more

12/5/2019 / Appeals , Contract Drafting , Contract Terms , Limited Liability Company (LLC) , Member Removal , Members , Non-Compete Agreements , Operating Agreements , Reformation , Restrictive Covenants

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

2/26/2019 / Contract Terms , Employment Contract , Employment Litigation , Enforceability , Former Employee , Geographic Markets , Non-Compete Agreements , Non-Solicitation Agreements , Restrictive Covenants , Subsidiaries

Liquidated Damages: A Viable Alternative to Noncompetition Agreements in Louisiana?

The Louisiana Third Circuit Court of Appeal recently issued an opinion that might pave the way for employers to use liquidated damages as a means of discouraging competition by former employees in certain...more

1/19/2016 / Employee Training , Employment Contract , Liquidated Damages , Non-Compete Agreements , Recoupment , Restraint of Trade

Louisiana Federal Court Cautions Against Seeking Enforcement of Invalid Noncompete Agreements

In what should serve as a cautionary tale to employers with noncompete agreements, a federal court in the Eastern District of Louisiana allowed an unfair trade practices claim to survive against an employer that attempted to...more

9/1/2015 / Employer Liability Issues , Non-Compete Agreements , Restaurant Industry , Unfair or Deceptive Trade Practices

Andrew Burnside

Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

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