Updated October 16, 2023
An Indiana non-solicitation agreement prohibits an employee from soliciting their employer’s customers, clients, employees, or contractors after leaving the company. Non-solicitation agreements are typically signed at the start of employment and may be a standalone document or included as a clause in an employment contract.
Is It Legally Enforceable in Indiana?
Yes — if they are reasonable with respect to the employer, the employee, and the public interest. (Licocci v. Cardinal Associates, Inc., 445 N.E.2d 556, 561 (Ind. 1983))
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What Types of Solicitation Can Be Prohibited?
A non-solicitation agreement can restrict an individual from reaching out to the employer’s:
- Former or current employees
- Former or current clients/customers
- Independent contractors
- Other business affiliates
What Should Be Included in the Agreement?
To hold up in a court of law, a non-solicitation agreement must include reasonable restrictions with regard to:
1. Time Limit
A non-solicitation covenant must state the duration that the terms are effective for. Typically ranging from several months to a few years, the effective duration must be considered fair and reasonable to both parties — the employer and employee — as well as public interest.
2. Geographical Limit
Similarly, the terms of the agreement must state the specific area or location where the employee is prohibited from engaging in the scope of restricted activities. The set geographical area must be considered reasonable.
3. Scope of Restricted Activities
Restricted activities in a non-solicitation agreement can range from prohibiting contact with a specific client or employee to prohibiting contact with all parties associated with the employer. The scope of the restrictions must be considered reasonable and fair to hold up in a court of law.
Related Forms
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Indiana Non-Disclosure Agreement
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