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Can I require employees to sign non-compete agreements in Indiana? What are the requirements?

To be enforceable, a physician noncompete agreement in Indiana must include the following provisions [1.1]:

  1. A provision that requires the employer of the physician to provide the physician with a copy of any notice that concerns the physician’s departure from the employer and was sent to any patient seen or treated by the physician during the two-year period preceding the termination of the physician’s employment or the expiration of the physician’s contract. Patient names and contact information must be redacted from the copy of the notice provided from the employer of the physician to the physician.
  2. A provision that requires the physician’s employer to, in good faith, provide the physician’s last known or current contact and location information to a patient who requests updated contact and location information for the physician and was seen or treated by the physician during the two-year period preceding the termination of the physician’s employment or the expiration of the physician’s contract.
  3. A provision that provides the physician with access to or copies of any medical record associated with a patient described in provision 1 or 2 upon receipt of the patient’s consent.
  4. A provision that provides the physician whose employment has terminated or whose contract has expired with the option to purchase a complete and final release from the terms of the enforceable physician noncompete agreement at a reasonable price. However, in the event the physician elects not to exercise the purchase option, then the option to purchase provision may not be used in any manner to restrict, bar, or otherwise limit the employer’s equitable remedies, including the employer’s enforcement of the physician noncompete agreement.
  5. A provision that prohibits the providing of patient medical records to a requesting physician in a format that materially differs from the format used to create or store the medical record during the routine or ordinary course of business, unless a different format is mutually agreed upon by the parties. Paper or portable document format copies of the medical records satisfy the formatting provisions of this chapter.

Additionally, it is important to note that these requirements only apply to physician noncompete agreements originally entered into on or after July 1, 2020 [1.2].

As for non-compete agreements for employees in general, Indiana law does not prohibit employers from requiring employees to sign non-compete agreements. However, such agreements must be reasonable in scope, duration, and geographic area to be enforceable [3.1]. There are no specific requirements for non-compete agreements for employees other than physicians in Indiana.

Therefore, if you are considering requiring employees to sign non-compete agreements in Indiana, it is recommended that you consult with a legal professional to ensure that the agreement is reasonable and enforceable.

Source(s):
Jurisdiction

Indiana