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?

Knowing in advance whether a judge will enforce an employee's non-compete clause can be challenging. Although the interests of employers are important, courts in Louisiana also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Plaquemine that are unreasonably large.

The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.

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

A Plaquemine, Louisiana lawyer can help you review the covenant before you sign any provisions that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. 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.