Trade Secret Attorney, Non-Compete Agreement Attorney: Non-Compete Agreement Considerations for Employers

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11/04/2011

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Many people still think that Michigan law somehow makes non-compete agreements illegal. This is not true. Non-compete agreements are legal in Michigan as long as they are reasonable in scope and duration. Michigan is like many other states that have changed their view of non-compete agreements between employers and employees. While they used to be considered mostly unlawful, they are now considered to be mostly lawful.

Whether consideration for non-compete agreement is required varies state by state. Some states require separate consideration in order for a non-compete agreement to be enforceable. State law varies on this issue so check with a non-compete lawyer to learn more.

Drafting a non-compete agreement is very state sensitive. Because some states will reform a non-compete agreement that is overly broad, you can draft no competes in those states broadly. In other states, the court will strike the whole agreement if it is too broad in scope. So drafting a non-compete contract too aggressively will shoot down the whole agreement.

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