In general, covenants not to compete involve an employee in the state of Louisiana who agrees not to work for competitors of their employer when they leave the company. Such covenants are frequently called "non-compete" clauses". An employee who signs them either does so as a condition to employment or they may receive compensation for the agreement.

When are Covenants not to Compete Unenforceable?

Whether a given judge will enforce a non-compete agreement is difficult to know in advance. Even if the employee's interests may be important Louisiana courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. A court will typically hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Crowley that is excessively large.

Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Finally, the covenant not to compete must have a legitimate business purpose which is behind the employer's motivation for requiring the agreement.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Before you sign any provisions that could restrict your rights, you may consider hiring a Crowley, Louisiana attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.