Are employers allowed to require employees to sign a non-compete agreement?

In Louisiana, employers are legally allowed to require employees to sign a non-compete agreement. A non-compete agreement is an agreement between the employer and employee that restricts the employee from participating in certain activities that may be in competition with the employer. These activities may include working for a competitor, sharing confidential information, or poaching customers or employees. Under the Louisiana Code of Civil Procedure, non-compete agreements are enforceable if it is: (1) in writing; (2) executed by the employee and employer; (3) necessary to protect the employer’s interest; and (4) not against public policy or in violation of any other law. It is important that the agreement be reasonable with respect to duration, scope, and geographical area. Although not required by law, employers should provide employees with a reasonable compensation and consideration in exchange for signing a non-compete agreement. If the employer is unable to prove that there was consideration, then the agreement may not be enforceable in court. Furthermore, employers should take time to make sure the agreement is written in plain language and easy for the employee to understand. If an employer violates the wage and hour law when requesting employees to sign a non-compete agreement, then the employee may file a complaint with the Louisiana Workforce Commission. Additionally, employees have the right to consult with an attorney to learn more about their rights and whether signing the agreement is in their best interest.

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Are employers allowed to require employees to sign a non-compete agreement?

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