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Yes, non-compete clauses are generally enforceable in Indiana as of 2025, provided they meet specific criteria. The clauses must be reasonable in time, geographic area, and the scope of activities they restrict. Courts often uphold these agreements when they protect legitimate business interests. For tailored documents, consider using Indiana Sample Noncompete Clauses available on our platform.
A 90-day non-compete clause restricts an employee from working in a similar business for 90 days after leaving their job. This type of clause aims to protect a company’s interests while allowing former employees to re-enter the workforce relatively quickly. Examining Indiana Sample Noncompete Clauses can help you understand how such clauses are structured in Indiana.
Ultimately, in order for a non-compete agreement to be enforceable under Indiana law, it must be, above all, reasonable. When proving reasonableness, an employer must be able to prove two elements, which include: The employer has a legitimate interest to be protected by the agreement.
Duration: Durations of three to five years are common amongst non-compete agreements. However, the more specialized the role and specific the knowledge, the longer a non-compete agreement may be enforceable.
What Options Are Available To Enforce A Non-Compete In Indiana? Any employer can require a new employee to sign a non-compete agreement as a stipulation of employment. The employee has the right to negotiate the terms of the agreement, but in the end, the employer can deny employment if the new hire declines to sign.
Indiana courts will not enforce a non-compete unless its restrictions are reasonable in scope as to time, activity, and geographic area restricted. Depending on the language of your non-compete agreement, you may be able to challenge the reasonableness of the terms.
Generally, Indiana courts don't look favorably on non-compete contracts. The employer has the burden of proof, meaning they must show the court that the agreement is enforceable. The court may find a contract to be completely void or may hold both parties to a modified version.
Here are five ways to beat a non-compete agreement.Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...