Are Indiana Non-Competes Still Enforceable in 2025?

Non-compete agreements have long been a point of tension between employers wanting to protect their business and employees wanting the freedom to advance their careers. In 2025, the landscape is shifting quickly. With federal regulators pushing back on non-competes and Indiana courts scrutinizing their enforceability, both employers and employees should know where things stand.

The National Landscape

The Federal Trade Commission (FTC) recently proposed rules that would severely restrict non-compete agreements nationwide. While these rules face legal challenges, they signal a clear trend: non-competes are under attack. Employers who rely on them should review their contracts now.

Indiana Law on Non-Competes

In Indiana, courts traditionally enforce non-compete agreements only if they are:

• Reasonable in scope. The restriction must be limited in time and geography.
• Protecting a legitimate interest. This might include safeguarding confidential information or customer goodwill.
• Not overly restrictive. The agreement cannot prevent an employee from earning a living in their field.

For example, an Indiana court may uphold a one-year restriction preventing a salesperson from contacting former clients in a small region but strike down a three-year statewide ban on working in the industry.

Risks for Employers

If your agreements are too broad, they may not survive a legal challenge. Indiana judges are reluctant to rewrite contracts to make them fairer — instead, they may throw the agreement out entirely. Employers should consider whether less restrictive agreements, such as confidentiality or non-solicitation agreements, might be more effective.

Rights for Employees

If you’re asked to sign a non-compete:

• Review it carefully before signing. You may be able to negotiate narrower terms.
• Don’t assume it’s automatically enforceable. Courts look at each agreement individually.
• If you’re leaving a job and worried about restrictions, seek legal advice before making your next move.

The Bigger Picture

Indiana workers are in high demand, and restrictive covenants can limit mobility. Employers still have tools to protect their businesses, but they must be careful not to overreach.

Conclusion

Non-compete law is evolving quickly in Indiana and across the country. At Goodin Abernathy, I help employers draft enforceable agreements and employees defend their rights when restrictions go too far. If you’re facing questions about a non-compete, now is the time to get clarity before it becomes a costly dispute.