The next state in our series to study non-compete bans is Texas`s neighbor east of Louisiana. As I like to say, when you travel east and cross the Sabine River from Texas to Louisiana, all the words change, but the concepts generally remain the same. This is partly the case with Louisiana`s approach, which is to be an ally, not to compete. For this chapter, we are accompanied by my partner Rob Ford, who is licensed in Louisiana, the only civil jurisdiction in the country. Like me, Rob has handled a number of cases in this arena in Louisiana, and his discernment is valuable. Any contract or agreement or provision that will deter any person from practising a legal profession, commercial or commercial activity of any kind, except as stipulated in this section, is null and void. Before the 2020 changes, under LA. R.S. 23:921, a company, Partnership or LLC, could only enter into an agreement to prevent a shareholder, partner or agent from owning or being a competing company (provided it meets the two territorial and permanent requirements above). These companies were unable to reach an agreement to prevent these individuals from being employed by only one competing company. Of course, although this contains the language necessary to cover a large number of topics relevant to the potential for unfair competition, certain facts will have to be reported in order for them to apply to the parties concerned and to the development of a fair agreement. Non-compete clauses are a controversial area of the law, with critics saying they prevent employees from finding new jobs in their field of activity, while others argue that these agreements protect companies from unfair competition.

As PBS Newshour reports, about 40% of Americans have signed a non-compete agreement, but many of them have no idea what such an agreement means for their future career prospects. Even companies often ignore what a non-compete agreement can and cannot do, especially in Louisiana, where non-compete agreements are subject to different standards than the rest of the country. The fifth section, «5th Jurisdiction,» will request a report on where this agreement will be regulated.