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Non-compete agreements

Posted on 1/17/17 at 11:12 am
Posted by Tommy Callahan
Member since Dec 2012
437 posts
Posted on 1/17/17 at 11:12 am
Anyone in Louisiana with any experience with these?

What are some things that will make it not enforceable?

A little back story: signed one when I first started as an assistant 10 yrs ago, now in a management role. Positions as well as pay structure have changed several times since then. Looking at options outside of current company.
Posted by MSMHater
Houston
Member since Oct 2008
22774 posts
Posted on 1/17/17 at 11:13 am to
quote:

signed one when I first started as an assistant 10 yrs ago

Are you still under the term of that same contract? Have you renewed it every year? What were the specific terms of the non-compete?

I use them in physician contracts all the time.
Posted by Tommy Callahan
Member since Dec 2012
437 posts
Posted on 1/17/17 at 11:15 am to
I really dont remember, it was 10 years ago, I dont have a copy and no, I have never resigned anything over the years.
Posted by KillTheGophers
Member since Jan 2016
6209 posts
Posted on 1/17/17 at 11:15 am to
What city do you reside? I can point you to competent counsel once I know that.


In before "they are not enforceable in Louisiana".

Posted by MSMHater
Houston
Member since Oct 2008
22774 posts
Posted on 1/17/17 at 11:17 am to
quote:

I really dont remember, it was 10 years ago, I dont have a copy and no, I have never resigned anything over the years.


I have never seen an employment contract with a 10 year term. I would be shocked if any clause in that contract would be enforceable.

That said, make your employer produce a copy for you.
Posted by Hawkeye95
Member since Dec 2013
20293 posts
Posted on 1/17/17 at 12:14 pm to
quote:

That said, make your employer produce a copy for you.


that is going to work out well.

Better for him to say, he thinks one of his employees is going to defect. What is the non compete policy?
Posted by Tommy Callahan
Member since Dec 2012
437 posts
Posted on 1/17/17 at 12:18 pm to
I dont believe the agreement stated a term length, can these things be open ended? Say in effect for 2 years after employment with said company has ended?
Posted by JoseVargasTX
Heath, TX
Member since Sep 2011
718 posts
Posted on 1/17/17 at 12:58 pm to
Tell employer your cpa is doing some long term planning with you and your wife and would like a copy of your employee file.
Posted by jturn17
Member since Jan 2011
4978 posts
Posted on 1/17/17 at 1:38 pm to
quote:

can these things be open ended? Say in effect for 2 years after employment with said company has ended?
Yes, depending on what the original agreement says.

quote:

In before "they are not enforceable in Louisiana".
People who think or say this are spreading lies.
This post was edited on 1/17/17 at 1:40 pm
Posted by poule deau
Member since Jan 2009
1405 posts
Posted on 1/17/17 at 1:49 pm to
Non competes are very enforceable in La.

However, one thing that I have been told that offers some leverage to the employee is that La courts have looked upon non competes unfavorably if there was no form of compensation (monetary or otherwise)given to the employee for signing the agreement.

I am not an attorney but have had some dealings with this in the past from an employer standpoint.

Seriously, consult an attorney who specializes in this area.
Posted by Weekend Warrior79
Member since Aug 2014
16314 posts
Posted on 1/17/17 at 2:02 pm to
quote:

However, one thing that I have been told that offers some leverage to the employee is that La courts have looked upon non competes unfavorably if there was no form of compensation (monetary or otherwise)given to the employee for signing the agreement.


I have been told this and that if they are not specific, it is very difficult for a company to make them enforceable.

Our company attorney advised us that the primary reason why courts look unfavorably towards them is if you build a career in a certain industry, your current company cannot keep you from working within the same industry. However, there are certain things you can do to make them work in your favor (we are still waiting for those things). Where they will get you is if you leave and YOU call your current customers to try to get them to come to your new company.
Posted by jturn17
Member since Jan 2011
4978 posts
Posted on 1/17/17 at 2:04 pm to
quote:

I have been told that offers some leverage to the employee is that La courts have looked upon non competes unfavorably if there was no form of compensation (monetary or otherwise)given to the employee for signing the agreement.
This is probably true, if it was signed after employment had begun. E.g. When the ABC company moves to a city, XYZ company has a bunch of current employees sign non-competes and gives each like $500 to $1k to not go work for ABC Company for 2 years.

This all said, each region of LA has some differences in enforcement. It's always best to have an attorney in your area, who deals with these agreements a lot, look at the contract.

Generally though, if the clause is limited to 2 years and it specifically lists each parish to which it applies and the scope of the business practices, they're enforceable.
Posted by kjacksonp
Mobile, AL
Member since Dec 2006
1066 posts
Posted on 1/17/17 at 2:32 pm to
In some states (Alabama) they cannot be enforced against people who are considered "professionals"--JD, MD, ?CPA (not sure), perhaps other areas this would cover.
Have seen contracts where it is written in even though not enforceable assuming that the employee won't know that and will comply even when he/she does not have to.

Not sure how Louisiana works in that regard.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67006 posts
Posted on 1/17/17 at 2:35 pm to
They have to define the time period, and specify the parish, plus a whole host of other issues. They're not favored, but they are interpreted differently in different state appellate court circuits. I would definitely talk to a lawyer, and make sure I have a written copy of the signed agreement.
This post was edited on 1/17/17 at 2:38 pm
Posted by Maderan
Member since Feb 2005
806 posts
Posted on 1/17/17 at 2:40 pm to
quote:

and specify the parish


This.

When I went through this some years back i was told that the non-compete was only enforceable if it named the parishes in LA that it encompassed. Def consult an attorney though.

Posted by TheWiz
Third World, LA
Member since Aug 2007
11672 posts
Posted on 1/17/17 at 2:54 pm to
Isn't Ochsner big on making their MDs sign non-competes? So I hear anyway...
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 1/17/17 at 3:13 pm to
quote:

Tommy Callahan


Why would you leave your dad's company for O'Reilly's?
Posted by 1609tiger
Member since Feb 2011
3221 posts
Posted on 1/17/17 at 3:54 pm to
It must list term and the parishes it applies to. Compensation to sign is not required.
Posted by Colonel Flagg
Baton Rouge
Member since Apr 2010
22776 posts
Posted on 1/17/17 at 5:25 pm to
It is best to just talk to an attoney who specializes in this area. The agreement typically has to be very specific though.
Posted by diat150
Louisiana
Member since Jun 2005
43468 posts
Posted on 1/17/17 at 7:41 pm to
why do people sign these? unless the company agrees to compensate for the full term of the non compete I would never sign one of these.
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