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 often called "non-compete" clauses". Employees who sign them can 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. Even if the employee's interests may be significant 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. 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 New Castle that is excessively large.
Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer's industry. Lastly, an employer is required to have a legitimate 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?
Before you sign any agreements that could restrict your rights, you may consider hiring a New Castle, 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 contemplating suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.