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Non-Compete Clauses and Restrictive Covenants

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Restrictive covenants are provisions in an employment contract or agreement that essentially limit your ability to compete with your former employer after you leave. Although the stated goal of these covenants is to protect their trade secrets and other confidential material, employers will often use them as an intimidation tactic to prevent employees from leaving the company.

At Biesecker Dutkanych & Macer, LLC, our Indianapolis employment lawyers have more than 50 years of combined experience protecting the rights of employees. If you feel you have been wronged by an employer, our firm can help you recover fair compensation.

Call our firm today for an evaluation at (317) 537-9920.

Examples of Restrictive Covenants

  • Non-compete clauses are one of the most common restrictive covenants, and they can be very broad in nature. Generally, these clauses will prevent you from working for a competing company, as well as from starting your own company that directly competes.
  • Non-recruitment or non-solicitation clauses restrict your ability to hire any employees of your ex-employer for a specified length of time after the employment is terminated.
  • Confidentiality provisions are perhaps the most common form of restrictive covenants and are often signed by employees outside of a contractual agreement. These restrict your ability to use any trade secrets or confidential information after you leave the company.

In most cases, other restrictive covenants are all seen as support for confidentiality provisions, as they restrict specific activities that could lead to a breach of said provisions.

Can Restrictive Covenants Be Enforced?

In Indiana, judges decide if a non-compete is enforceable based on whether or not it is reasonable.

Below are the factors that determine the reasonableness of a non-compete agreement:

  1. If the restriction is essential to protecting an employer's legitimate interests (good will, trade secrets, and confidential information).
  2. The restriction's effect on the employee.
  3. The public's interest.

These factors and are considered while also looking at the duration, geographic extent, and activities that are restricted.

In some cases, the restrictions put forth by these covenants are fully legal and will be tough to combat. For many more employees, however, these agreements can be unlawfully restrictive and may even be challenged in court. Due to the complexity of these cases, it’s vital to contact an experienced Indianapolis employment law attorney.

Contact Our Employment Law Attorneys at (317) 537-9920

Our skilled team of Indianapolis employment attorneys has been standing for the rights of employees for more than five decades. When you hire our firm, we will take the time to learn about your specific case, and will craft a personalized, maximally effective legal strategy with your best interests in mind.

Retain a tireless advocate for your employment rights. Call Biesecker Dutkanych & Macer, LLC today at (317) 537-9920.

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