Employer Who Sued Former Employees to Enforce Non-Competition Clauses Did Not Violate Indiana’s Blacklisting Statute

Indiana and several other states statutorily prohibit employers from “blacklisting” former employees, that is, attempting to prevent them — whether they were discharged or resigned — from obtaining subsequent employment. Responding recently to certified questions from the U.S. District Court for Southern Indiana, the Indiana Supreme Court held that former employer Loparex, LLC did not violate the statute when it sued (unsuccessfully) for an injunction to enforce a non-competition agreement signed by two ex-employees, one who was terminated and another who left voluntarily. Loparex, LLC v. MPI Release Technologies, LLC, 2012 WL 955426 (Ind. Sup. Ct. Mar. 21, 2012). In reaching that result, the Supreme Court rejected its almost century-old decision in Wabash R.R. Co. v. Young, 162 Ind. 102, 69 N.E. 1003 (1904).

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