New Indiana Physician Noncompete Agreement Requirements Become Effective on July 1, 2020

Significant new requirements for physician noncompete agreements in Indiana took effect on July 1, 2020, including mandatory language allowing a physician to purchase “a complete and final release” from a noncompete agreement “at a reasonable price.” The law also includes several provisions related to notices that employers must provide to patients and doctors when a physician’s employment has terminated or contract expires.

Indiana Supreme Court Favors Employee Over Interpretation of “Public Policy” Exception to At-Will Employment.

In Perkins v. Memorial Hospital of South Bend (Case No. 20S-CT-233), a split Indiana Supreme Court ruled in favor of an employee who was discharged after testifying against Memorial Hospital of South Bend at a coworker’s unemployment compensation hearing. In its decision, the supreme court reiterated and reaffirmed Indiana’s strong presumption of at-will employment and discussed, but declined to create, an exception for voluntary witness testimony at unemployment hearings.

Indiana Governor Issues Updated Stay-at-Home Order Due to Continued Spread of COVID-19

On April 6, 2020, Indiana Governor Eric J. Holcomb issued an updated “Stay-at-Home Order,” Executive Order 20-18 (E.O. 20-18), superseding the Stay-at-Home Order that he issued on March 23, 2020. In announcing the updated order, Governor Holcomb noted that COVID-19 had spread to almost every county in Indiana.

Indiana Governor Holcomb Issues Stay-at-Home Order Due to COVID-19

On March 23, 2020, Indiana Governor Eric J. Holcomb issued a “Stay-at-Home Order,” Executive Order 20-08 (E.O. 20-08). Under the order, Indiana residents are directed to stay in their homes except to engage in certain “Essential Activities,” including taking care of others, obtaining necessary supplies, and for health and safety reasons. Individuals are also permitted to leave home to work for certain “Essential Business or Operations,” and to carry out certain permitted activities, including “Minimum Basic Operations.” Under the order, nonessential business operations may continue only to the extent that employees or contractors are performing activities exclusively at their own residences.

Indiana Supreme Court Reaffirms That the Blue Pencil Doctrine Is an ‘Eraser’ for Overbroad Restrictive Covenant Language

On December 3, 2019, in Heraeus Medical, LLC v. Zimmer, Inc., the Indiana Supreme Court reaffirmed the “blue pencil doctrine,” likening the doctrine to an eraser and stating that Indiana courts may only delete language from overbroad restrictive covenants; they cannot reform or add to such agreements.

ADA Litigation Lessons Surfaced From a Zamboni Machine

Employers, you see this movie all too often. You tolerate, and then ultimately discharge, a poor-performing employee who displays a bad attitude. Unfortunately, supervisors have not documented the employee’s prior instances of insubordinate and adversarial behavior. In addition, he hurt himself on the job, filed a workers’ compensation claim, and presented medical restrictions. In his mind, he cannot believe that he was the problem. So he sues, alleging that you failed to accommodate his disability and unlawfully terminated his employment.

Seventh Circuit Holds That Obesity Alone Is Not a Protected Disability Under the ADA

In a matter of first impression before the court, the U.S. Court of Appeals for the Seventh Circuit recently held in Richardson v. Chicago Transit Authority, Nos. 17-3508 and 18-2199 (June 12, 2019), that obesity is not a protected disability under the Americans with Disabilities Act (ADA) unless a plaintiff can demonstrate that it is caused by an underlying physiological disorder or condition. With the decision, the Seventh Circuit brought clarity to a novel issue previously unresolved for employers in Illinois, Indiana, and Wisconsin.

Seventh Circuit Preaches on the Ministerial Exception

For the first time since a 2012 decision by the Supreme Court of the United States, the Seventh Circuit Court of Appeals elaborated on and applied the Supreme Court’s four-factor analysis to determine whether a position is properly considered a ministerial roles. In its recent decision in Grussgott v. Milwaukee Jewish Day School, Inc., No. 17-2332 (February 13, 2018), the Seventh Circuit broke a 2-to-2 tie among the four factors and held that the circumstances in the case of a teacher at a Jewish school supported the conclusion that the teacher’s position was subject to the ministerial exception.

Seventh Circuit Finds Five-Year Sale-of-Business Noncompete Agreement Valid

In E.T. Products, LLC v. D.E. Miller Holdings, Inc., the Seventh Circuit Court of Appeals recently held that noncompete agreements signed by sellers of a business were enforceable under Indiana law, but the sellers did not violate the agreements. In doing so, the court provided valuable considerations for drafting valid noncompete agreements in the context of a sale of business.