Michigan Non-Compete Law | MI Statute Re Enforcability of Contracts

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.
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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.
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If you have a question concerning this statute or its applicaiton to you or your business, you should contact an attorney. 

Comments

[security guard training]

For the most part I agree with Larry but i do believe that in some industries, a non competitive contract can be a better option for both the companies and the employees. The example you are using illustrates that. Security guards are contracted to the company that pays them, not the company they are providing security services at...

[Rita B]

I am seeking an “Employer Lawyer” to challenge this NCA I signed with my former employer. I had a family friend who does “Family Law” look into this NCA. He has written me a letter stating this NCA is subject to challenge and list reasons in my favor. Mr. Mattson has talked to my former employer’s lawyer and was told they are bound and determined to seek enforcement. I am not involved in a lawsuit at this time. I am seeking to challenge this non-compete out of fear of retaliation. I live in Seattle, WA. I was employed with them less then 3 months and I also have been in this business 10+ years and learned no "trade secrets". I was told by my new employer that my former employer just wants to make an example out of me leaving so her other employers do not leave. I just want to challenge this out of fear of retaliashion from my former employer.

I really hope you can help me in this matter,
Regards,

Rita

Ps. I have a copy of my NCA and I have written a summary of my unfortunate situation for your review if needed.

[larry]

Michigan law is just that . Law. it does not apply to Ohio at will state. No employer has the right to infringe on ones lively hood. Take for instance a Security guard position . all Security Companies have the same Post orders and Procedures in general, no matter what. A security guard is Contracted only in name only as to who and whom makes the paycheck out. There are NO trade secrets amondst Security companies,only what they preceive to be theres. I for one dont believe in a Non competitive contract and have broken many such supposed laws or such agreements. On notice this American will not abide such ruling or reason or regulation. I will work when and where I want to. To stop me is infringing on my rights in the pursuit of happiness and to provide for family as to neccessities. As a conveyance to such ruling I have also posted at recorders office a notarzed statement that I do not ABIDE BY SUCH RULING OR HAVE TO ABIDE TO SUCH RULING THAT INFRINGES ON MY TRADE AND WELL BEING. sORRY FOLKS BUT THAT IS ME. IF THAT SOUNDS LIKE iM A REBEL , THEN SO BE IT.YOU CANT GET BLOOD OUT OF A TURNIP. THANK YOU AND HAVE A GOOD DAY!!