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Non Compete Legal Help

Posted on 3/3/21 at 7:49 pm
Posted by 4Andouille
Member since Jul 2013
99 posts
Posted on 3/3/21 at 7:49 pm
Maybe the wrong board, if so I apologize.

Anyone have any experience fighting one of these? From my understandings, they're almost unenforceable in LA, especially if no parish or municipality is mentioned. Will post pics if I can figure it out.

Any good lawyer recommendations if it comes to that?

Thanks in advance
This post was edited on 3/3/21 at 7:52 pm
Posted by Strannix
District 11
Member since Dec 2012
48942 posts
Posted on 3/3/21 at 7:55 pm to
They aren't really enforceable, right to work
Posted by geauxpurple
New Orleans
Member since Jul 2014
12375 posts
Posted on 3/3/21 at 8:06 pm to
I would not call them unenforceable.

The burden is on the employer to show certain things like spending time and money to give you training and access to information. They also have to be reasonable as to time and geographical limits.

Courts don't like to uphold these so they usually construe them strictly against the employer, but some of them can be enforced.
Posted by Ancient Astronaut
Member since May 2015
33109 posts
Posted on 3/3/21 at 8:14 pm to
There is a Code article setting forth the requirements.
Posted by SloaneRanger
Upper Hurstville
Member since Jan 2014
7747 posts
Posted on 3/3/21 at 8:29 pm to
Forget about seeking legal advice here and get a lawyer who knows something about this. If you are really facing an employment decision or an issue relating to this it will be money well spent. In most states there are few clear, easy answers in this area.
Posted by 4Andouille
Member since Jul 2013
99 posts
Posted on 3/3/21 at 8:33 pm to
Some basic background info.

Work is in the environmental field, been doing this same type of job for 5 years. Highly specialized job.

Majority of those years with a different company, only been with this former employer for 3 months. Just wasn't the right fit for me in terms of personnel and way things were run.

Non complete is pretty generic.

Don't work for a competitor within 100 mile radius of office for 2 years.

Only thing is, no specific office is specified other than the fact that I've worked out of said office. Work is nation wide, traveling east to west coast. No mention of a particular office or what defines working out of said office.

Again, no region/parish/city is expressly identified/mentioned.

Any other particular info needed to make a decision?

Posted by 4Andouille
Member since Jul 2013
99 posts
Posted on 3/3/21 at 8:34 pm to
Any reputable lawyers in the BR area?
Posted by htcthc321
Member since Oct 2010
1658 posts
Posted on 3/3/21 at 8:37 pm to
You're good. My best friend is an employment attorney and got me out of mine in the Baton Rouge area, as well as my brother in the Atlanta area.

Mine stated I couldn't work for a competitor within 150 miles of Baton Rouge. My brother's was within a 50 mile radius of Atlanta. In both instances, my buddy told the employers he'd be more than happy to take it before a judge and neither company wanted to pursue it.
Posted by EA6B
TX
Member since Dec 2012
14754 posts
Posted on 3/3/21 at 9:06 pm to
quote:

They aren't really enforceable, right to work


Common myth, and even if it gets shot down by a judge the OP will still need legal representation during the process, easier to hire a lawyer to deal with it up front.
Posted by FMtTXtiger
Member since Oct 2018
3738 posts
Posted on 3/3/21 at 9:19 pm to
Usually don’t hold up
Posted by 4Andouille
Member since Jul 2013
99 posts
Posted on 3/3/21 at 10:14 pm to
Thanks for all the responses guys
Posted by WDE24
Member since Oct 2010
54140 posts
Posted on 3/3/21 at 10:17 pm to
quote:

They aren't really enforceable, right to work
Any more great legal advice?
Posted by 4Andouille
Member since Jul 2013
99 posts
Posted on 3/4/21 at 3:10 am to
htcthc321,

Any way you could send me your friend's info?
Posted by boomtapp
Houston, Tejas
Member since Nov 2007
670 posts
Posted on 3/4/21 at 6:26 am to
Hi

Board certified employment lawyer here. I’ve obviously not seen the non compete, including what states law it says applies, but generally speaking most states require a reasonable geographic scope for a non compete to be enforceable. In LA, a non compete must list out the parishes or municipalities in which competition is to be restrained. If that isn’t present, there is a good chance the non compete is unenforceable. HOWEVER even if unenforceable, that doesn’t mean you don’t get a cease and desist letter or lawsuit filed against you seeking a temporary restraining order.

Every state law is different on this and every non compete is analyzed differently. There is no single way to draft or interpret one. Good luck.

Edit to add: right to work is a labor law concept where you cannot be required to join a union. Employment at will means you can quit or an employer can fire you for any reason (absent a contract or statute). Neither have anything to do with noncompetes.
This post was edited on 3/4/21 at 6:31 am
Posted by Twenty 49
Shreveport
Member since Jun 2014
18771 posts
Posted on 3/4/21 at 6:41 am to
quote:

They aren't really enforceable, right to work


The right to work laws allow someone to work in a union shop without being required to join the union.

People misunderstand them all the time. They confuse RTW with the employment at will doctrine and various other things, but RTW is of very limited applicability.

The Louisiana non-compete law (La. R.S. 23:921) generally allows one when (1) the non-compete agreement designates specific parishes, municipalities, and/or parts thereof within which the restriction applies, (2) the employer conducts a similar business therein, and (3) the duration of the restriction does not exceed two years.

OP says his does not designate parishes or municipalities, which is a strike against it. But some courts have been willing to "reform" an overbroad agreement and narrow the geographic limitation to one that is within the statute.

This depends on several factors, and only an attorney who reviews the entire agreement, has all the relevant facts, and is up to speed on LA law in this area can pretend to offer a valid opinion. Anyone else is just guessing or full of shite.
Posted by Ex-Popcorn
Member since Nov 2005
2132 posts
Posted on 3/4/21 at 8:19 am to
quote:

But some courts have been willing to "reform" an overbroad agreement and narrow the geographic limitation to one that is within the statute.


This is not accurate. Case law is pretty uniform that a lack of parish by name = void.

If it does not name a parish, and it's in Louisiana, tell them to pound sand.
Posted by KamaCausey_LSU
Member since Apr 2013
14537 posts
Posted on 3/4/21 at 8:24 am to
Even though no parishes listed means not valid in LA. It might still be worth your time and money to have a lawyer draft a letter to your former employer with your justifications.
Posted by Twenty 49
Shreveport
Member since Jun 2014
18771 posts
Posted on 3/4/21 at 8:29 am to
quote:

This is not accurate. Case law is pretty uniform that a lack of parish by name = void.


There has been a recent trend toward reforming. They used to be hard and strict, but times are changing. The complete lack of a parish/muni designation may doom it, but I wouldn't be sure without updating the research.

Here are recent examples of reformation:

"The record shows that in reforming Article 25.1 of the operating agreement, the trial court narrowed the geographic range to locations where HMV conducted business activities, removed sentences from the solicitation provision, deleted part of the definition of client and deleted the provision that prohibited Schmidt from being employed by HMV competitors. Although the trial court's revisions were fairly extensive, we cannot say the trial court abused its discretion in deciding to reform Article 25.1 by deleting the overbroad provisions, resulting in an enforceable noncompetition agreement."

Heard, McElroy & Vestal, LLC v. Schmidt, 52,783 (La. App. 2 Cir. 9/25/19), 280 So. 3d 806, 812, reh'g denied (Nov. 14, 2019)

and

By striking the words “and the States of Texas and Mississippi,” the contract is reformed so that it is not overly broad as to geographic limits.

Arthur J. Gallagher Risk Mgmt. Servs., Inc. v. Todd, 2010-41 (La. App. 3 Cir. 6/2/10)
Posted by Weekend Warrior79
Member since Aug 2014
16417 posts
Posted on 3/4/21 at 8:40 am to
quote:

In LA, a non compete must list out the parishes or municipalities in which competition is to be restrained

Not an attorney, but this was my understanding in LA. It must list the specific parishes/cities/municipalities you are restricted from working. A generic 100 mile radius would not be sufficient.

The 2 years is sufficient in LA (may be up to 3, but cannot recall).

Also, if it simply says with any competitor (or some variation), it may also be unenforceable because it is too generic. I believe it has to specifically state which competitors; especially if the company has various business lines. Imagine working for a local shop that is tied to a major conglomerate. Absent specific competitors, just about everyone could be a competitor.

It was explained to me (by a non-LA attorney) the agreement also has to what job functions you would be precluded from doing at another company within the specific jurisdictions. It cannot be silent to job functions, duties or title
This post was edited on 3/4/21 at 8:43 am
Posted by Ex-Popcorn
Member since Nov 2005
2132 posts
Posted on 3/4/21 at 8:53 am to
quote:

Here are recent examples of reformation:

"The record shows that in reforming Article 25.1 of the operating agreement, the trial court narrowed the geographic range to locations where HMV conducted business activities, removed sentences from the solicitation provision, deleted part of the definition of client and deleted the provision that prohibited Schmidt from being employed by HMV competitors. Although the trial court's revisions were fairly extensive, we cannot say the trial court abused its discretion in deciding to reform Article 25.1 by deleting the overbroad provisions, resulting in an enforceable noncompetition agreement."

Heard, McElroy & Vestal, LLC v. Schmidt, 52,783 (La. App. 2 Cir. 9/25/19), 280 So. 3d 806, 812, reh'g denied (Nov. 14, 2019)

and

By striking the words “and the States of Texas and Mississippi,” the contract is reformed so that it is not overly broad as to geographic limits.

Arthur J. Gallagher Risk Mgmt. Servs., Inc. v. Todd, 2010-41 (La. App. 3 Cir. 6/2/10)


Seriously, you need to stop trying to scare this guy. The first case you posted has absolutely nothing to do with this issue he raised. The noncompete in Heard actually specified parishes. The trial court simply severed (pursuant to a severability clause) excess geographic scope for places where the company may want to open business sites in the future.

The second case...same thing. It specified the actual parishes but then also said Texas and Mississippi. The severability clause allowed the court to sever Texas and Mississippi to allow the non-compete to apply to the specific parishes listed.

There is no (still valid) case out there that allows a court to reform a non-compete in Louisiana to add parishes.

Cliffs: If there's no parish(es) listed or identified, it is absolutely null and void.
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