In-form Laois led from the start at Celtic Park on Sunday afternoon as they maintained their winning streak in the Allianz Football League.
A Paul Cahillane goal helped his side to a 1-09 to 0-04 half-time lead and they continued to impress on the restart, with defender Darren Strong (0-03) among their scorers.
Derry lost Declan Mullan to a red card in the 42nd minute, and a late penalty goal from Paddy Bradley (1-03) was mere consolation.
The manner of this defeat was a big wake-up call for John Brennan's side who were losing for the first time in competitive action in 2011.
Laois certainly meant business and they had a point on the board from Daithi Carroll after just 13 seconds. The next phase of play saw Billy Sheehan double the visitors' lead.
Derry's loose marking gave the fleet-footed Laois attack all sorts of space and Cahillane's 21st-minute goal gave Justin McNulty's side a deserved 1-05 to 0-04 lead.
Derry had opened their account through Conleth Gilligan (0-02), James Kielt and Paddy Bradley, but the O'Moore were well in control.
Carroll and Ross Munnelly (0-02) added to Laois' tally before the latter's inviting pass played in Cahillane for a neat finish to the net.
Midfielders Brendan Quigley and Mark Timmons were late withdrawals from the Laois line-up, with Pauric Clancy and goal scorer Cahillane added to the side.
Derry struggled to respond before the break, and two pointed frees and a score from play from MJ Tierney saw Laois canter clear. Centre-back Shane Julian also soloed through for a late point, putting eight between the sides at the turnaround.
Derry got a lifeline just two minutes into the second half. Substitute Caolan O'Boyle was fouled by Denis Booth for a penalty, but Paddy Bradley's shot clipped the crossbar and went over for a point - their first score in 19 minutes.
It was goals the Oak Leafers needed. However, they were being outplayed in midfield as Laois continued to pile forward in search of points. Munnelly, Sheehan and Tierney, who top-scored with 0-05, also showed great accuracy when presented with scoring opportunities.
Derry's hopes took a significant hit when wing forward Declan Mullan was sent-off for his second bookable offence.
Derry showed admirable fight as they strung together two points after the dismissal. But Laois then tagged on eight points without reply to move into a 1-19 to 0-07 lead with two minutes remaining.
Substitute Eoin Bradley was fouled for a late penalty which Paddy Bradley knocked to the net. Even still, Division 2 leaders Laois had the last word with closing points from Colm Begley and attacking wing back Strong.
