An Indiana Non-Compete Agreement is an employment contract used by a company attempting to keep its new hires from accepting a job from a direct competitor is very common.
On this page, we explore the intricacies of this document within Indiana’s legal structure as it relates to non-compete agreements in the workplace.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – Yes.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – Yes.
Legally Enforceable in Indiana?
Yes, a non-compete agreement is enforceable in the state of Indiana. It is common for companies to require their new employees to agree to sign a non-compete agreement before they are hired. Should an employee violate the stipulations of their signed non-compete, their employer may pursue damages in court.
Employees should always carefully read any documents that they are asked to sign before agreeing to take a job. If they have specific questions about a non-compete agreement that they are made to sign, they should first consult with an attorney.
Reasonable Uses and Exceptions
There are some limits to what an employer may or may not do when enforcing a non-compete agreement or making an employee sign one. Indiana state law states that an employer may enforce a non-compete as long as it is not unreasonably restrictive toward the employee and as long as it is reasonably necessary to protect the employer.
The boundaries of reasonable or unreasonable are somewhat left to interruption. Still, courts can generally sort this out between employees and their employers when they cannot do it independently.
It is necessary for the restraints placed on the employee within the agreement to be clear and precise while also not being overly burdensome.
Time Limitations
Indiana does not allow employers to restrict employees from working for a competitor for an excessive amount of time. However, there is no specific definition of how long that time may last.
Geographic Limitations
There aren’t any specific geographic limitations on non-compete agreements in Indiana, but reasonable restrictions are still required as part of the law overall.
Sample
You can download an Indiana non-compete agreement template below, in PDF and Word format:
