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 generally difficult. Even though the interests of an employer are important, Indiana courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an excessively long period of time or if they cover an unreasonably large geographic area around Huntingburg.

Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Lastly, the employer needs to have an acceptable business interest which justifies their motives in requiring their employee to sign a covenant not to compete.

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

Before you sign any documents that could restrict your rights, you may consider hiring a Huntingburg, Indiana attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. Attorneys can provide valuable counseling to employers who are considering suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.