Non-compete law in Indiana

Exceptions and special rules

• Hospital-physician noncompete ban excludes: nondisclosure agreements protecting confidential business information or trade secrets; employee non-solicitation of up to 1 year that does not restrict patient interactions, referrals, clinical collaboration or professional relationships; and agreements made in a bona fide sale of a business entity in which the physician owns more than 50% at sale (IC 25-22.5-5.5-1.4(b), SEA 475 sec. 4)
• No sale-of-business provision outside the physician chapter was located; sale covenants fall under the general common-law test.
• Physicians (all employers). For physician noncompete agreements originally entered into on or after 2020-07-01, the agreement is enforceable only if it contains: (1) employer to give the physician a copy of any departure notice sent to patients seen in the prior 2 years (patient names redacted); (2) employer to give patients who ask the physician's current contact information in good faith; (3) physician access to or copies of related patient records on patient consent; (4) an option to buy a complete release at a reasonable price (not to limit the employer's equitable remedies if unexercised); (5) a ban on providing records in a materially different format. From 2023-07-01 the agreement is also unenforceable if the employer terminates without cause, the physician terminates for cause, or the contract has expired and both sides fulfilled it; the employer must negotiate the buy-out price in good faith, with mediation available on a 35-day notice and 45-day timeline. (IC 25-22.5-5.5-1, -2, -2.6 (HEA 1004 (2020) sec. 8; SEA 7 (2023) secs. 2, 4))
• Primary care physicians (family medicine, general pediatric medicine, internal medicine). Notwithstanding any other law, a primary care physician and an employer may not enter into a noncompete agreement; applies to agreements not originally entered into before 2023-07-01. (IC 25-22.5-5.5-1.5, -2.5 (SEA 7 (2023) secs. 1, 3))
• Physicians of any specialty employed by hospitals, hospital parent companies, affiliated managers or hospital systems. May not enter a noncompete agreement on or after 2025-07-01; violating agreements are void and unenforceable. 'Noncompete agreement' includes any term that restricts or penalizes practicing medicine with a new employer, requires employer consent or equitable relief to do so, imposes repayment of bonuses/training expenses for physicians employed 3+ years, or has the effect of deterring such practice. Does not apply to agreements originally entered into before 2025-07-01 (amendments and renewals do not reset the date). (IC 25-22.5-5.5-1.1 to -1.7, -2.3 (SEA 475 (2025) secs. 1-7))

Non-solicitation clauses

No statute outside the hospital-physician carve-out for employee non-solicitation of 1 year or less; otherwise common-law reasonableness.

Remedies

Agreements entered in violation of the hospital-physician ban are void and unenforceable (IC 25-22.5-5.5-2.3(c)); the chapter does not otherwise abrogate other rights or remedies at law or equity (IC 25-22.5-5.5-4).

Which agreements it covers

Physician chapter: agreements originally entered into on/after 2020-07-01 (general chapter); 2023-07-01 (primary care physician ban); 2025-07-01 (hospital-physician ban). 'Originally entered into' means the first date of the agreement, not an amendment or renewal (IC 25-22.5-5.5-1.6).

Recent changes

• 2025-07-01. SEA 475 (2025) added IC 25-22.5-5.5-1.1 to -1.7 and -2.3: hospital, hospital-system and affiliated-manager noncompetes with any physician barred for agreements on/after 2025-07-01. (Governor signature date, reported as 2025-05-06 and Public Law number come from secondary sources; the enrolled act fetched is unsigned.) Source
• 2023-07-01. SEA 7 (2023) added the primary care physician ban (IC 25-22.5-5.5-2.5), the unenforceability triggers in -2(b) and the buy-out mediation process (-2.6). Source
• 2020-07-01. HEA 1004 (2020) added IC 25-22.5-5.5 (physician noncompete agreements must contain required provisions). Source