Lexology May 16, 2024
Phelps Dunbar LLP

The Louisiana Legislature passed Senate Bill 165 on May 15, which would create substantial changes to Louisiana’s law regarding covenants not to compete (noncompetes) in physician employment contracts. The bill is now headed to Governor Jeff Landry’s desk for his signature.

If signed, the bill would affect noncompetes in all physician employment agreements, except for those in agreements with rural hospitals (as defined under Louisiana’s Rural Hospital Preservation Act) or Federally Qualified Health Centers. Though the new law would not go into effect until Jan. 1, 2025, health care employers and physicians should act as soon as possible to review their employment agreements and determine whether changes are needed to comply with the changes to existing law.

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Topics: Govt Agencies, Physician, Provider, States
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