re: Professional non-compete clauses

quote:

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I had a friend that worked for a competitor and was laid off. She was contacted by a few others companies but her former company gave her notice that they would be enforcing the non compete.
This is in Louisiana

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If drafted correctly, non-competition agreements are generally enforceable. A large percentage are not drafted correctly for Louisiana.

Here's a great example of a bad one:

"... Employee’s obligations under this subsection (Non-Competition) will not continue after his or her employment hereunder ends if his or her employment is terminated (I) by EMPLOYER other than (x) for cause or (y) in connection with a transfer to, or otherwise becoming an employee of, another EMPLOYER Member Company, or (ii) by Employee other than for Good Reason ...”

The contract defined a "good reason" for the employee to terminate employment, including a reduction in pay reduction in hours. Quitting to take another job was not a "good reason." However, the agreement says that the non-compete provision does not apply if the employee leaves "OTHER than for good reason." The new employer that hired the person subject to the agreement pointed out that the employee quit for a bad reason (by the terms of the contract) so the non-compete would not apply.

It was a typo, but the former employer drafted it. No suit was filed because the prior employer knew that they screwed up the agreement.