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SB132 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning labor and safety.

A BILL FOR AN ACT to amend the Indiana Code concerning labor and safety.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Senator Lonnie Randolph
Last action
2026-01-20
Official status
Introduced Senate Bill (S)
Effective date
Not listed

Plain English Breakdown

The official summary and text do not provide details on enforcement mechanisms or penalties for violating the prohibition on noncompete agreements.

Indiana Bill to Limit Noncompete Agreements

This bill prohibits employers and employees in Indiana from making noncompete agreements if the employee earns less than $150,000 a year.

What This Bill Does

  • Prohibits an employer and an employee from entering into a noncompete agreement if the employee's annual compensation is less than $150,000.

Who It Names or Affects

  • Employers and employees in Indiana
  • Workers earning less than $150,000 per year

Terms To Know

noncompete agreement
A contract that stops someone from working for a competitor after leaving their job.

Limits and Unknowns

  • The bill does not specify what happens if an employer and employee try to enter into such agreements anyway.
  • It is unclear how this law will be enforced or what penalties might apply.

Bill History

  1. 2026-01-20 Senate

    Senator Freeman added as second author

  2. 2026-01-20 Senate

    Senator Qaddoura added as third author

  3. 2026-01-15 Senate

    Senator Freeman added as second author

  4. 2026-01-15 Senate

    Senator Qaddoura added as third author

  5. 2026-01-08 Senate

    Senator Qaddoura removed as second author

  6. 2026-01-05 Senate

    Authored by Senators Randolph Lonnie M, Qaddoura

  7. 2026-01-05 Senate

    First reading: referred to Committee on Judiciary

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning labor and safety.
Restriction on noncompete agreements.

Current Bill Text

Read the full stored bill text
A BILL FOR AN ACT to amend the Indiana Code concerning labor and safety.

Restriction on noncompete agreements.

Prohibits an employer and an employee from entering into a noncompete agreement if the employee's annual compensation is less than $150,000.