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.

Restrictive Covenants in the Time of Coronavirus

The spread of the coronavirus disease 2019 (COVID-19) has led to changes regarding many legal issues. Despite the changes, companies still need to protect confidential information, goodwill, customer relationships, and competitive marketplace positions. The pandemic raises a variety of issues to consider for restrictive covenants. Employers may want to keep these challenges in mind and tread carefully.

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.