RÉSUMÉ DIGEST
ACT 273 (SB 165) 2024 Regular Session McMath
Existing law provides that every contract or agreement by which anyone is restrained from
exercising a lawful profession, trade, or business of any kind shall be null and void.
Existing law provides for exceptions from existing law provided that any noncompete
provision does not exceed a period of two years from termination of employment.
New law requires any noncompete provisions for primary care physicians specified in new
law to terminate after three years from the effective date of the initial contract or agreement.
New law further prohibits any subsequent contract or agreement executed between the
employer and the primary care physician after the initial three-year term from including
noncompete provisions.
New law requires any provision in a contract or agreement that restrains any physician that
is not a primary care physician from practicing medicine to terminate after five years from
the effective date of the initial contract or agreement. New law further prohibits any
subsequent contract or agreement executed between the employer and the physician after the
initial five-year term from including noncompete provisions.
New law provides that if the contract or agreement is terminated by the physician prior to
the end of their specified term, the physician may be prohibited from carrying on or
engaging in a business similar to that of the employer in the parish in which the physician's
principal practice is located and no more than two contiguous parishes in which the
employer carries on a like business. New law requires the parishes to be specified in the
contract or agreement.
New law provides that the prohibition shall not exceed a period of more than two years from
termination of employment.
New law provides that provisions of new law shall not apply to any physician employed by
a rural hospital or certain federally qualified health centers.
Effective January 1, 2025.
(Adds R.S. 23:921(M), (N), and (O))


Statutes affected:
SB165 Original: 23:921(A)(1)