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Can a home care agency make caregivers sign a non-compete in Indiana?
Last verified October 17, 2026 · All Indiana resources
Generally enforceable if reasonable. Indiana has no general non-compete statute. Courts enforce covenants that are reasonably necessary to protect the employer's interests, such as goodwill and confidential information, and strictly construe them against the employer. Statutory limits apply only to physicians, so caregivers are not exempt by statute.
| Status | Generally enforceable if reasonable |
|---|---|
| Healthcare-specific rule | Primary care physicians and employers may not enter non-competes on or after 2023-07-01 (IC 25-22.5-5.5-2.5). Other physician non-competes must include patient-notice provisions and a buy-out option, with good-faith negotiation and mediation over the release price (IC 25-22.5-5.5). |
| Statute | IC 25-22.5-5.5 (physicians only) |
| Latest change | 2023-07-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
The general standard comes from Indiana case law summarized in a law firm survey. A 2025 law reportedly also limits non-competes for hospital-employed physicians.
General information, not legal advice.
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Non-compete rules by state: other states
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