Generally speaking, Indiana courts do support non-compete agreements provided that they follow some guidelines. However, a new law has passed (effective on July 1, 2020) states that certain health care professions, specifically Indiana licensed physicians, must include specific provisions for it to be enforceable:
For all other non-compete agreements, businesses must only use the restraint necessary to protect a legitimate interest, such as goodwill, confidential information, customer lists, special training, and their actual process of solicitation of customers. Agreements may not be overboard. Factors to determine reasonableness often include:
Indiana courts may strike some terms and apply the blue pencil philosophy if contract terms lend themselves to the practice. They may also strike out invalid clauses to leave valid clauses.
Protect your Indiana business by also using an Indiana non-disclosure agreement form. Download an Indiana non-disclosure agreement form now!
To write an Indiana non-compete agreement, include the following clauses:
The parties should sign and print their names. The signatures should be dated. Additionally, each party should receive a copy of the finalized non-compete agreement for their records.