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Started By
Message
OT Lawyers: Question about Non-Compete
Posted on 2/8/17 at 1:06 pm
Posted on 2/8/17 at 1:06 pm
I am considering bringing in the best sales rep from a competing company. She contacted me to gauge interest and to tell me of the harsh working conditions and environment she is expected to perform under. She signed a non compete five years ago that runs for a total of two upon termination. I know that a non compete in LA is essentially meaningless. My question is, since this company operates out of GA and she would be employed in LA, would this void her non compete and protect her under LA law?
19
Posted on 2/8/17 at 1:10 pm to TigerOnTheMountain
Non compete in Louisiana is not meaningless. It all depends on what the contract says. In Louisiana it's valid if it meets certain requirements. You probably ought to talk to a lawyer about that one.
Posted on 2/8/17 at 1:12 pm to TigerOnTheMountain
Talk to an attorney. There are likely to be choice of law provision(s) to analyze as well as the potential for conflicting state public policies (especially on restrictive covenant validity).
Posted on 2/8/17 at 1:15 pm to TigerOnTheMountain
I would definitely listen to the first two replies.
Posted on 2/8/17 at 1:16 pm to TigerOnTheMountain
A non-compete in Louisiana is not "essentially meaningless." 
A non compete in Louisiana can only restrict competition in geographic areas where the company is currently performing business and those parishes must be explicitly listed in the agreement. If the agreement was drafted in Georgia, I would think that including Louisiana in the non-compete agreement would be overly broad and unenforceable.
A non compete in Louisiana can only restrict competition in geographic areas where the company is currently performing business and those parishes must be explicitly listed in the agreement. If the agreement was drafted in Georgia, I would think that including Louisiana in the non-compete agreement would be overly broad and unenforceable. Posted on 2/8/17 at 1:24 pm to T Blair
quote:
If the agreement was drafted in Georgia, I would think that including Louisiana in the non-compete agreement would be overly broad and unenforceable.
Same but GA has a fairly new law in place relating to blue penciling employment agreements, we'd need to know more about the covenants, job duties, etc.
If you're really making a hiring decision you definitely don't want to wing this one.
Posted on 2/8/17 at 1:26 pm to Pettifogger
quote:
If you're really making a hiring decision you definitely don't want to wing this one.
Truth
Posted on 2/8/17 at 1:28 pm to T Blair
quote:
A non compete in Louisiana can only restrict competition in geographic areas where the company is currently performing business and those parishes must be explicitly listed in the agreement. If the agreement was drafted in Georgia, I would think that including Louisiana in the non-compete agreement would be overly broad and unenforceable.
This. I think it's also required that the company restricting competition also be "doing business" in those parishes which are explicitly listed. I suppose it's possible that the GA company has complied with the statute, but that's probably not the case unless if it's a company that does business all over the southeast.
Posted on 2/8/17 at 1:28 pm to TigerOnTheMountain
No, you can't have Dan Enos.
Posted on 2/8/17 at 1:48 pm to TigerOnTheMountain
quote:
I know that a non compete in LA is essentially meaningless.
I've seen it enforced for insurance sales. The company the guy left for was in the same town though.
Posted on 2/8/17 at 1:56 pm to TigerOnTheMountain
quote:It is weird how people all over the country assume this. Most states have some type of legal decision or statute that claims "non-competes are disfavored," or something along those lines. However, they then go on to say under what circumstances they well be enforced. Non compete agreements are then usually drafted so as to be enforceable under at least some sets of circumstances.
I know that a non compete in LA is essentially meaningless.
If you are dealing with a non-compete, you should assume it is enforceable until you speak with an attorney and he/she can evaluate all of the variables. Even then, it is likely the attorney won't be able to tell you 100% whether a court is likely to enforce all, some or none of the provisions of the non-compete.
This post was edited on 2/8/17 at 2:05 pm
Posted on 2/8/17 at 1:57 pm to TigerOnTheMountain
quote:
I know that a non compete in LA is essentially meaningless.
myth
Posted on 2/8/17 at 2:01 pm to TigerOnTheMountain
Who told you that non-compete's in LA are meaningless? Because they're totally wrong.
Go read La. R.S. 23:921.
They're very enforceable...we deal with them every day.
What areas/regions does her non-compete cover?
Go read La. R.S. 23:921.
They're very enforceable...we deal with them every day.
What areas/regions does her non-compete cover?
Posted on 2/8/17 at 2:01 pm to TigerOnTheMountain
NCCs aren't meaningless anywhere.
Say what you want about attorneys, but good consultation is worth its price - go seek counsel.
Say what you want about attorneys, but good consultation is worth its price - go seek counsel.
Posted on 2/8/17 at 2:05 pm to AlonsoWDC
quote:
Say what you want about attorneys, but good consultation is worth its price - go seek counsel.
Posted on 2/8/17 at 2:05 pm to TigerOnTheMountain
Too many issues to consider. She needs a lawyer.
Generally, non-competes must be reasonably circumscribed in respect of geography, time period and activities. Even then, many jurisdictions are imposing more stringent legal and public policy restrictions. They also cannot prohibit whistle blowing. The Feds are starting to come down on those types of restrictions with the quickness.
Generally, non-competes must be reasonably circumscribed in respect of geography, time period and activities. Even then, many jurisdictions are imposing more stringent legal and public policy restrictions. They also cannot prohibit whistle blowing. The Feds are starting to come down on those types of restrictions with the quickness.
Posted on 2/8/17 at 2:07 pm to Mo Jeaux
there are other concerns, like trade secrets and what not
even if you don't have a NCA, you can still be enjoined from certain changes in employment if there are trade secret concerns
even if you don't have a NCA, you can still be enjoined from certain changes in employment if there are trade secret concerns
Posted on 2/8/17 at 2:08 pm to SlowFlowPro
And the employee might get stuck with an injunction and then you're out of an employee until the matter settles.
Posted on 2/8/17 at 2:08 pm to TigerOnTheMountain
Someone had mentioned to me that for LA NCC's to be enforceable, it has to specify a particular geographical area (ie. certain parishes or cities where she would be prohibited from directly competing against prior employer). Wouldn't think you'd run into a problem unless you hire her and she starts trying to solicit business from clients of her previous company. But could depend on wording of the NCC, so best to get a copy of the NCC she signed and have an attorney (not the OT kind) read it to be sure
Posted on 2/8/17 at 2:09 pm to SlowFlowPro
True. I know just enough about this area to call our employment guys downstairs.
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