Non-compete laws · LA

Louisiana physician non-compete law

As of October 21, 2026, Louisiana law allows physician non-competes only within limits, including at most 24 months.

Allowed with physician-specific limitsChecked 2026-10-21

Physician noncompetes must name parishes and generally last no more than two years after employment. Under a 2024 law, restraints cannot extend beyond three years (primary care) or five years (other physicians) from the initial contract's start; later contracts with that employer cannot include noncompetes. (La. R.S. 23:921 (current text, official legislature site))

Changed recently. The current rule took effect 2025-01-01. Pages and guides written before then may describe the old rule.

Limits in the law

Maximum duration
24 months
  • Restraint must be limited to specified parishes or municipalities where the employer carries on a like business (La. R.S. 23:921(C))
  • Primary care physicians: a restraint may not exceed three years from the effective date of the initial contract; later contracts with the same employer after that term may not include noncompete provisions (23:921(M))
  • All other physicians: same rule with a five-year term (23:921(N))
  • If the physician terminates before the initial 3- or 5-year term ends, the restraint is limited to the parish of the physician's principal practice and no more than two contiguous parishes where the employer carries on a like business, specified in the contract, for no more than two years after termination

Who it covers

Physicians. 'Primary care physician' = predominantly practices general family medicine, general internal medicine, general pediatrics, general obstetrics or general gynecology; all other physicians fall under the five-year rule. Other clinicians are covered only by the general 23:921 rules.

Exceptions

  • Subsections M and N do not apply to physicians employed by or under contract with a rural hospital (Rural Hospital Preservation Act) or with a federally qualified health center operating in a rural parish; general rules (Subsections C, J, K, L) apply to them (23:921(O))
  • Sale of business goodwill: up to two years from sale in specified parishes (23:921(B))
  • Shareholders, partners and LLC members: up to two years after ceasing to be an owner, in specified parishes (23:921(J), (K), (L))
  • Partnership dissolution: up to two years (23:921(E))

Effective date

The current rule took effect 2025-01-01.

Notes

Act 273 of 2024 took effect Jan. 1, 2025. For contracts in force on that date, the three- or five-year term runs from Jan. 1, 2025, so on a literal reading such restraints cannot extend past Jan. 1, 2028 (primary care) or Jan. 1, 2030 (other physicians). Physicians at rural hospitals and rural FQHCs are exempt from the three- and five-year rule.

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?
Check a contract against Louisiana lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Louisiana.