Employer Alert: What’s Allowed In A Non-Compete Varies State-By-State

Almost every U.S. state allows non-compete agreements (the most notable exception being California), but among the states that have them, there is significant variation in the details, and not knowing those details can be costly. In Louisiana, for example, the law says the agreement must specify the “parish or parishes, municipality or municipalities, or parts thereof” where the agreement will apply, and in a recent court case, an agreement was disallowed completely because it was written to embrace the entire state of Louisiana, and three other states as well. Baker Donelson attorney Jason Bush takes a look at the Louisiana case and points out how, for employers, it underscores the importance of knowing the specific law in their jurisdiction before formulating any non-compete agreement, and keeping up with legal developments after its signed.