(a) In determining the reasonableness in time of a restrictive covenant sought to be enforced after the termination of an employment or business relationship, a court shall apply the rebuttable presumptions established in this section. A court shall presume that a time restraint greater than the applicable restraint described in subdivision (b)(1), (b)(2), or (b)(3) is unreasonable.
(b) (1) A court shall presume to be reasonable in time a restraint sought to be enforced against a former employee or independent contractor that:(A) Is two (2) years or less in duration, measured from the date the employment or business relationship terminates; and(B) Is not associated with the sale or ownership of all or a material part of:(i) The assets of a business, professional practice, or other commercial enterprise;(ii) The shares of a corporation;(iii) A partnership interest;(iv) A membership interest in a limited liability company; or(v) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.(2) A court shall presume to be reasonable in time a restraint three (3) years or less in duration, measured from the date of termination of the business relationship in the case of a restrictive covenant sought to be enforced against a current or former distributor, dealer, franchisee, lessee of real or personal property, or licensee of a trademark, trade dress, or service mark, and not associated with the sale of all or a material part of:(A) The assets of a business, professional practice, or other commercial enterprise;(B) The shares of a corporation;(C) A partnership interest;(D) A membership interest in a limited liability company; or(E) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.(3) A court shall presume to be reasonable in time a restraint that is the longer of five (5) years or less, or a period equal to the time during which payments are made to the owner or seller, in the case of a restrictive covenant sought to be enforced against the owner or seller of all or a material part of:(A) The assets of a business, professional practice, or other commercial enterprise;(B) The shares of a corporation;(C) A partnership interest;(D) A membership interest in a limited liability company; or(E) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(1) A court shall presume to be reasonable in time a restraint sought to be enforced against a former employee or independent contractor that:(A) Is two (2) years or less in duration, measured from the date the employment or business relationship terminates; and(B) Is not associated with the sale or ownership of all or a material part of:(i) The assets of a business, professional practice, or other commercial enterprise;(ii) The shares of a corporation;(iii) A partnership interest;(iv) A membership interest in a limited liability company; or(v) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(A) Is two (2) years or less in duration, measured from the date the employment or business relationship terminates; and
(B) Is not associated with the sale or ownership of all or a material part of:(i) The assets of a business, professional practice, or other commercial enterprise;(ii) The shares of a corporation;(iii) A partnership interest;(iv) A membership interest in a limited liability company; or(v) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(i) The assets of a business, professional practice, or other commercial enterprise;
(ii) The shares of a corporation;
(iii) A partnership interest;
(iv) A membership interest in a limited liability company; or
(v) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(2) A court shall presume to be reasonable in time a restraint three (3) years or less in duration, measured from the date of termination of the business relationship in the case of a restrictive covenant sought to be enforced against a current or former distributor, dealer, franchisee, lessee of real or personal property, or licensee of a trademark, trade dress, or service mark, and not associated with the sale of all or a material part of:(A) The assets of a business, professional practice, or other commercial enterprise;(B) The shares of a corporation;(C) A partnership interest;(D) A membership interest in a limited liability company; or(E) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(A) The assets of a business, professional practice, or other commercial enterprise;
(B) The shares of a corporation;
(C) A partnership interest;
(D) A membership interest in a limited liability company; or
(E) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(3) A court shall presume to be reasonable in time a restraint that is the longer of five (5) years or less, or a period equal to the time during which payments are made to the owner or seller, in the case of a restrictive covenant sought to be enforced against the owner or seller of all or a material part of:(A) The assets of a business, professional practice, or other commercial enterprise;(B) The shares of a corporation;(C) A partnership interest;(D) A membership interest in a limited liability company; or(E) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(A) The assets of a business, professional practice, or other commercial enterprise;
(B) The shares of a corporation;
(C) A partnership interest;
(D) A membership interest in a limited liability company; or
(E) Any other equity interest or right to receive profits in a business, professional practice, or other commercial enterprise.
(c) This section does not prohibit an employer from enforcing:(1) A confidentiality or nondisclosure agreement;(2) A client or customer nonsolicitation agreement; or(3) An employee nonsolicitation agreement.
(1) A confidentiality or nondisclosure agreement;
(2) A client or customer nonsolicitation agreement; or
(3) An employee nonsolicitation agreement.
(d) A court may modify a restrictive covenant governed by this section to render it reasonable and enforceable.