Non-Compete Laws in Indiana
Enforceable with limits
Indiana restricts non-competes for physicians (effective July 2025) and primary care physicians (effective July 2023). For other workers, enforceability depends on reasonableness and protection of legitimate business interests under common law.
Key details
| Enforceability | Enforceable with limits |
|---|---|
| Banned industries | Physicians and primary care physicians are protected. |
| Blue pencil doctrine | Varies |
| Key statute | IC §25-22.5-5.5-2.5 |
What this means for you
If you are a physician in Indiana, your non-compete may be restricted. For other workers, courts evaluate agreements on a case-by-case basis.
Non-compete laws in Indiana: what you need to know
Indiana restricts non-competes primarily for healthcare workers. Since July 2025, physicians are protected from non-compete agreements, joining primary care physicians who have been protected since July 2023. For workers outside healthcare, Indiana relies on common law standards to evaluate non-compete enforceability.
Indiana courts use a traditional reasonableness analysis for non-healthcare non-competes. Agreements must be supported by adequate consideration, protect a legitimate business interest, be reasonable in scope and duration, and not impose undue hardship on the employee. Indiana courts have historically been moderately willing to enforce reasonable non-competes.
One important consideration for Indiana workers is the issue of consideration. If you signed a non-compete at the start of your employment, the job itself may serve as adequate consideration. But if your employer asked you to sign a non-compete after you were already employed, additional consideration (such as a raise, bonus, or promotion) may be required for the agreement to be enforceable.
Indiana does not have an income threshold or broad statutory restrictions beyond the healthcare protections. Workers in any industry and at any salary level may be subject to enforceable non-competes if the agreement meets the common law standards. If you are evaluating a non-compete, focus on whether it is narrowly tailored to protect a specific, legitimate interest.
Indiana's expansion of physician protections in 2025 reflects the national recognition that non-competes in healthcare can directly harm patients. If you are a physician in Indiana, your non-compete is now restricted or void, depending on the specific terms. For physicians who signed non-competes before the new protections took effect, the enforceability of the existing agreement may depend on whether the contract has a renewal or amendment provision.
For non-healthcare workers in Indiana, the common law framework means that the enforceability of your non-compete depends on its specific terms. Indiana courts consider the nature of the employment, the consideration provided, and the reasonableness of the restrictions. If you are uncertain about your agreement, an employment attorney can help you evaluate your options.
More Indiana workplace laws
Check other workplace law topics for Indiana:
Frequently asked questions about non-compete laws in Indiana
No. Indiana enacted protections for primary care physicians effective July 2023 and expanded them to all physicians effective July 2025. Physician non-competes are not enforceable.
No. Indiana does not use an income threshold. Enforceability depends on traditional common law standards of reasonableness.
For new employees, the job offer itself may serve as adequate consideration. For existing employees asked to sign a non-compete, additional consideration such as a raise, bonus, or promotion may be required.
Indiana courts have discretion to modify non-competes, though practices vary. Some courts will blue pencil an agreement to make it reasonable; others may void it entirely.
Indiana does not set a statutory maximum duration. Courts evaluate the length as part of the reasonableness analysis, typically looking at the nature of the business and the employee's role.