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Can noncompete agreements be formed with independent contractors in Louisiana?

Many types of agreements can be formed between businesses and workers here in Louisiana. One type of agreement Louisiana businesses sometimes want to form with their employees are noncompete agreements. Louisiana law does allow for the formation of such agreements between employers and employees (with some exceptions) and, generally, such an agreement between an employer and an employee is enforceable as long as it meets the requirements of state law.

Now, employees are not the only workers a business here in Louisiana might have a desire to form a noncompete agreement with. Businesses might sometimes want to form such agreements with independent contractors that they have contracts with. Thus, a question a company might have is: Are businesses allowed to form noncompete agreements with independent contractors in Louisiana?

The general answer to this question is yes. Under Louisiana law, as long as the contract for performance of work that an independent contractor has with a business is a written contract, formation of a noncompete agreement between the contractor and the business generally is allowed. The requirements for such an agreement to be enforceable in the state are similar to the requirements for noncompete agreements between employers and employees. 

Just as can be the case with noncompete agreements with employees, disputes can sometimes arise in relation to noncompete agreements businesses form with independent contractors. Skilled business law attorneys can give guidance and assistance to Louisiana businesses that are in a noncompete agreement dispute with an independent contractor that they contracted for work.  

Source: Louisiana State Legislature, "RS 23:921 - PART II.  CONTRACTS," Accessed May 7, 2015 

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