In general, covenants not to compete involve an employee in the state of Indiana who agrees not to work for competitors of their employer when they leave the company. Such covenants are frequently called "non-compete" clauses". Employees who sign them may either receive compensation or simply be required to agree as a condition for their employment.

When are Covenants not to Compete Unenforceable?

Foreseeing whether or not a judge will uphold a covenant not to compete is typically difficult. Although the interests of employers are important, courts in Indiana also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. A court will normally hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Auburn that is excessively large.

Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a rational way to the employer's industry. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

An Auburn, Indiana lawyer can help you review the covenant before you sign any agreements that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can give valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.