Concerned about Michigan non-compete laws? It is the public policy of Michigan as embodied by statute to enforce reasonable non-competition provisions in employment contracts. According to Michigan law, non-compete agreement is enforceable provided it is reasonable with respect to duration, geographical area, and line of business it seeks to limit. Employer's legitimate business interest that will justify restrictive covenant in employment contract must be something greater than mere competition, since prohibition on all competition is in restraint of trade; to be reasonable, restrictive covenant must protect against employee gaining some unfair advantage in competition with his employer but not prohibit employee's future use of general knowledge or skill.
M.C.L.A. 445.774a (Michigan Compiled Laws Annotated )
Chapter 445. Trade and Commerce: Michigan Antitrust Reform Act (Refs & Annos)
445.774a. Agreements not to compete; application
Sec. 4a. (1) An employer may obtain from an employee an agreement or covenant which protects an employer's reasonable competitive business interests and expressly prohibits an employee from engaging in employment or a line of business after termination of employment if the agreement or covenant is reasonable as to its duration, geographical area, and the type of employment or line of business. To the extent any such agreement or covenant is found to be unreasonable in any respect, a court may limit the agreement to render it reasonable in light of the circumstances in which it was made and specifically enforce the agreement as limited.
(2) This section shall apply to covenants and agreements which are entered into after March 29, 1985.
If you have a question concerning this statute or its applicaiton to you or your business, you should contact an attorney.