Indiana Prohibits Physician Noncompete Agreements

Indiana will prohibit hospitals from requiring physicians to enter new noncompete agreements signed on or after July 1, 2025, according to Wane News. SB 475 prohibits non-compete agreements between physicians and hospitals including restrictions on physicians’ ability to work for a new employer, financial penalties or repayment obligations after three years of employment, requirements for employer consent or legal relief to change jobs, and other indirect restrictions that deter physicians from practicing elsewhere. Notably, non-compete agreements signed before July 1, 2025 remain valid.