Indiana Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what Indiana requires; the download is our standard non-compete template, to be scoped to Indiana's rules below.
Indiana non-compete rules at a glance
| Enforceability | Enforceable if reasonable in duration, geographic area, and scope of restricted activity. |
|---|---|
| Protected workers / thresholds | Primary-care physicians: banned (2023); other physicians: statutory buyout rights (2020) |
| Required formalities | No statutory notice or salary threshold; consideration and reasonableness rules come from case law. |
| Overbroad agreements | Strict blue-pencil: courts may strike divisible overbroad parts but will not add or rewrite terms |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How Indiana handles non-compete agreements
Indiana lets employers blue-pencil but never redraft — and its physician rules are now among the country's most specific, including a statutory right to buy out of the restraint at a defined price. The practical drafting rule for Indiana: enforceable if reasonable in duration, geographic area, and scope of restricted activity.. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
Indiana non-compete agreement FAQs
Are non-compete agreements enforceable in Indiana?
Enforceable if reasonable in duration, geographic area, and scope of restricted activity. Coverage limits matter here: primary-care physicians: banned (2023); other physicians: statutory buyout rights (2020).
What happens to an overbroad non-compete in Indiana?
Strict blue-pencil: courts may strike divisible overbroad parts but will not add or rewrite terms Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a Indiana non-compete require?
No statutory notice or salary threshold; consideration and reasonableness rules come from case law. Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in Indiana?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in Indiana or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.