Indiana non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

physicians

Statutes and official texts quoted

IC 25-22.5-5.5-2.5 (SEA 7, 2023); IC 25-22.5-5.5-2(b) (SEA 7, 2023); IC 25-22.5-5.5-2(a)(4) (SEA 7, 2023); IC 25-22.5-5.5-2.3 (SEA 475, 2025); IC 25-22.5-5.5-1.4(b) (SEA 475, 2025); IC 25-22.5-5.5-1.5 (SEA 7, 2023); IC 25-22.5-5.5-2(a)(1) (SEA 7, 2023); IC 25-22.5-5.5-2(a)(2) (SEA 7, 2023); IC 25-22.5-5.5-1.4(a) (SEA 475, 2025); IC 25-22.5-5.5-1.4(b)(2) (SEA 475, 2025)

Notice and signing

To be enforceable, an Indiana physician noncompete must require the employer to give the physician a copy of any notice about the physician's departure sent to patients the physician saw or treated in the two years before leaving.

“(a) Subject to subsection (b), to be enforceable, a physician noncompete agreement must include all of the following provisions: (1) A provision that requires the employer of the physician to provide the physician with a copy of any notice that: (A) concerns the physician's departure from the employer; and (B) was sent to any patient seen or treated by the physician during the two (2) year period preceding the termination of the physician's employment or the expiration of the physician's contract.”
IC 25-22.5-5.5-2(a)(1) (SEA 7, 2023)

Health care and other professions

Since July 1, 2023, a primary care physician and an employer may not enter into a noncompete agreement (not applicable to agreements originally entered before July 1, 2023).

“Notwithstanding any other law, a primary care physician and an employer may not enter into a noncompete agreement.”
IC 25-22.5-5.5-2.5 (SEA 7, 2023)

Beginning July 1, 2023, a physician noncompete is not enforceable if the employer terminates without cause, the physician terminates for cause, or the contract expires with obligations fulfilled.

“Beginning July 1, 2023, a physician noncompete agreement is not enforceable if any of the following circumstances occur: (1) The employer terminates the physician's employment without cause. (2) The physician terminates the physician's employment for cause.”
IC 25-22.5-5.5-2(b) (SEA 7, 2023)

A physician noncompete must give a departing physician the option to buy a complete and final release at a reasonable price, among other required provisions.

“A provision that provides the physician whose employment has terminated or whose contract has expired with the option to purchase a complete and final release from the terms of the enforceable physician noncompete agreement at a reasonable price.”
IC 25-22.5-5.5-2(a)(4) (SEA 7, 2023)

On or after July 1, 2025, a physician may not enter into a noncompete agreement with a hospital, hospital parent company, affiliated manager, or hospital system; violating agreements are void.

“may not enter into a noncompete agreement on or after July 1, 2025. (c) Any agreement in violation of this section is void and unenforceable.”
IC 25-22.5-5.5-2.3 (SEA 475, 2025)

The 2025 definition excludes confidentiality agreements, employee non-solicitation up to one year, and bona fide business sales where the physician owns more than 50%.

“An agreement made in connection with the bona fide sale of a business entity when the physician owns more than fifty percent (50%) of the business entity at the time of sale.”
IC 25-22.5-5.5-1.4(b) (SEA 475, 2025)

For these rules, Indiana defines a primary care physician as one practicing family medicine, general pediatric medicine or internal medicine.

“"primary care physician" refers to a physician practicing in one (1) or more of the following: (1) Family medicine. (2) General pediatric medicine. (3) Internal medicine.”
IC 25-22.5-5.5-1.5 (SEA 7, 2023)

It must also require the employer, in good faith, to give the physician's last known or current contact and location information to a patient from those two years who asks for it.

“(2) A provision that requires the physician's employer to, in good faith, provide the physician's last known or current contact and location information to a patient who: (A) requests updated contact and location information for the physician; and (B) was seen or treated by the physician during the two (2) year period preceding the termination of the physician's employment or the expiration of the physician's contract.”
IC 25-22.5-5.5-2(a)(2) (SEA 7, 2023)

For the 2025 hospital rule, a noncompete agreement is any contract term that restricts or penalizes a physician's practice of medicine anywhere, for any time, after employment with a hospital, its parent, an affiliated manager or a hospital system ends.

“"noncompete agreement" means a contract, or any part of a contract, to which a physician is a party that has the purpose or effect of restricting or penalizing a physician's ability to engage in the practice of medicine in any geographic area, for any period of time, after the physician's employment relationship with a hospital, a parent company of a hospital, an affiliated manager of a hospital, or a hospital system has ended.”
IC 25-22.5-5.5-1.4(a) (SEA 475, 2025)

Excluded from that definition is a non-solicitation agreement covering current employees for no more than one year after the physician leaves; such an agreement may not restrict patient interactions or patient referrals.

“(2) A nonsolicitation agreement that prohibits solicitation of current employees for a period not exceeding one (1) year after the physician's employment ends. However, the nonsolicitation agreement may not restrict: (A) patient interactions; (B) patient referrals;”
IC 25-22.5-5.5-1.4(b)(2) (SEA 475, 2025)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Indiana rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Indiana?

Since July 1, 2023, a primary care physician and an employer may not enter into a noncompete agreement (not applicable to agreements originally entered before July 1, 2023). (IC 25-22.5-5.5-2.5 (SEA 7, 2023)).

Does Indiana have special non-compete rules for health care workers or other professions?

Since July 1, 2023, a primary care physician and an employer may not enter into a noncompete agreement (not applicable to agreements originally entered before July 1, 2023). (IC 25-22.5-5.5-2.5 (SEA 7, 2023)).