Late last year, the Louisiana Court of Appeals upheld a trial court’s decision granting an injunction in favor of an employer against some of its former employees. It did so despite a Louisiana statue that purportedly prohibits the very restraint of trade the court enforced. Notably, the court barred a new business founded by former employees from competing in general, rather than soliciting and even went as far as to enforce an unsigned employment contract and to relieve the employer of the need to show irreparable harm at the preliminary injunction stage. The case is Savard Labor & Marine, Inc. v. Glo Resources, LLC., 2020 WL 6538342 (La. App. 1 Cir. 11/6/20).
Savard was in the business of providing temporary and contract labor. A group of employees left Savard to provide the very same service. It does not, however, appear that the new company, Glo Resources, was utilizing any trade secrets or even contacting Savard customers. Moreover, there is a Louisiana statute that nullifies non-competition agreements. But the statue has exceptions that apparently make its importance rather meaningless. At least in this case, former employees can not provide a very general non-trade secret service despite a lack of solicitations--for two years.
Cosgrove Law Group assists clients with non-compete agreement matters on a regular basis. If you would like one reviewed or if you are contemplating litigation to enforce or defend against one, please consider our services.