01MK7923 R12/23 better with friends For life’s moments, big and small. We’re here with the strength of the cross, the protection of the shield. The Right Card. The Right Care. relationship regardless of dissolution and the limited liability/member relationship. Louisiana law already specifically prohibits a non-compete agreement between an automobile salesman and his employer that restrains him/her from selling automobiles. “Salesman” is defined in 23:921 as “any person with a salesman’s license issued by the Louisiana Motor Vehicle Commission or the Used Motor Vehicle and Parts Commission, other than a person who owns a proprietary or equity interest in a new or used car dealership in Louisiana.” The FTC’s ban obviously has no effect on that Louisiana provision. The FTC’s nationwide ban, however, does affect non-compete agreements with other employees of new car dealers, including technicians. Even if the nationwide ban goes into effect after all legal challenges, six of Louisiana’s exceptions to the general prohibition on non-compete agreements (unrelated to employees) remain unaffected by the FTC’s final rule. Moreover, Louisiana law specifically allows a non-solicitation of customers agreement between employers and employees. Such a provision allows an ex-employee to continue working in the industry but prohibits the ex-employee from soliciting customers of their former employer. This provision also appears unaffected by the FTC’s final rule. Confidentiality provisions prohibiting employees from disclosing an employer’s confidential information also remain intact after the final rule. The final rule may never become law. New car dealers should continue taking advantage of the law as it exists today until the viability of the FTC’s final rule is judicially determined, which may take years. Jude C. Bursavich is a partner in the Baton Rouge, Louisiana, office of Breazeale, Sachse & Wilson LLP. He can be reached at (225) 381-8045 (O) and/ or (225) 921-5552 (C). He has over 30 years of experience in representing businesses against former employees throughout Louisiana. 9
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