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 if the employee's interests may be important Indiana courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. Some agreements that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Michigan City that is unreasonably broad.

Covenants must also be limited to restricting dealings with those competitors that are rationally related to the employer's industry. Finally, the covenant not to compete must have a legitimate business purpose which is behind the employer's motivation for requiring the agreement.

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

Since covenants could restrict your rights, you may wish to hire a Michigan City, Indiana lawyer to review any documents. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.