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Non-Compete Laws in Indiana

Indiana courts enforce non-competes to the extent they are reasonable, but statutes bar non-competes with primary care physicians (agreements from July 1, 2023) and between physicians and hospitals or hospital systems (agreements from July 1, 2025).

Last checked . General information, not legal advice.

Indiana at a glance

Status
Enforceable if reasonable (case law)
Primary care physician non-competes barred (IC 25-22.5-5.5-2.5); physician non-competes with hospitals and hospital systems barred from July 1, 2025 (IC 25-22.5-5.5-2.3).
Enforceable against employees
Yes, if reasonable

Sources

Last checked

The rules in Indiana

Are employee non-compete agreements banned, restricted or enforceable in Indiana?

Status in Indiana: Enforceable if reasonable (case law). Primary care physician non-competes barred (IC 25-22.5-5.5-2.5); physician non-competes with hospitals and hospital systems barred from July 1, 2025 (IC 25-22.5-5.5-2.3).

Can an employer enforce a non-compete against an employee in Indiana?

Yes, if reasonable. Enforceable against employees in Indiana: yes, if reasonable.

Where do the Indiana non-compete laws come from?

The rules above come from IC 25-22.5-5.5-2.5, IC 25-22.5-5.5-2.3, IC 25-22.5-5.5-2.6 and Central Indiana Podiatry, P.C. v. Krueger, 882 N.E.2d 723 (Ind. 2008). Each source is linked on this page. We last checked them in October 2026.

Good to know

Physicians bound by covered noncompetes have a statutory option to buy a release at a reasonable price negotiated in good faith (IC 25-22.5-5.5-2.6).

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.