The use of a non-compete agreement by a company attempting to keep its new hires from accepting a job from a direct competitor is very common. We explore the intricacies of this agreement within Indiana’s legal structure as it relates to non-compete agreements in the workplace.
Is a Non-Compete Agreement 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. If they do so, then those employees are legally bound by the stipulations contained within the agreement. Should an employee violate the stipulations of their signed agreement, 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 it comes to enforcing a non-compete agreement or even making an employee sign one. Indiana state law states that an employer may create a non-compete agreement 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 what is reasonable or unreasonable are somewhat left to interruption, but courts are generally able to sort this out between employees and their employers when they cannot sort it out on their own.
It is necessary for the restraints placed on the employee within the agreement to be clear and precise while also not being overly burdensome.
People often have the following questions about non-compete agreements in Indiana:
- 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
Non-Compete Agreement Indiana Limitations
Employers must not put an undue burden on the employee who is seeking to leave their job to join a competitor.
Limitations on Time
Indiana does not allow employers to restrict an employee from working for a competitor for an excessive amount of time. There is not a specific definition of how long that duration of time may last, however.
Non-Compete Agreement Indiana 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.
Indiana Non-Compete Agreement Sample
You can download an Indiana non-compete agreement template below, in PDF and Word format: