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ARTICLE · 15 SEPTEMBER 2021

Are Noncompetes Standing On Shaky Ground?

Over the last 18 months we have seen drastic changes in this country's employment laws as a result of the pandemic...

United StatesEmployment and HR

Over the last 18 months we have seen drastic changes in this country's employment laws as a result of the pandemic, including new and updated laws and regulations related to sick leave, unemployment compensation and employee safety requirements. One change that has been mostly overshadowed by the ever-evolving nature of the pandemic, and its impact on the employment area, is a shift in the use and the enforceability of noncompetition agreements.

Traditionally, employers have long used noncompete agreements, and other related restrictive covenants, to protect their customer bases and proprietary information and to limit the ability of their employees to take confidential information and set up a competitive business across the street. Indiana courts have been largely tolerant of noncompete agreements, especially when compared to their counterparts in California, for example, and have allowed employers to enforce noncompetition agreements that are reasonable. What is

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