The Basics of Michigan Non-Compete Agreements

Many Michigan businesses require their employees to sign non-compete agreements. Although many people assume these types of agreements are not enforceable, the fact is that non-compete agreements may be enforceable under Michigan so long as certain requirements are met.

Michigan non-compete agreements are subject to the Michigan Antitrust Reform Act and state and federal case law interpreting that statute. Under this law, in order to be enforceable, non-compete agreements must (1) be designed to protect an employer’s reasonable competitive business interests; (2) have a reasonable duration; (3) have a reasonable geographic scope; and (4) prohibit competition only in a clearly defined line of business.

Properly prepared and implemented non-compete agreements can provide the basis for obtaining an injunction prohibiting an ex-employee from competing against his or her former employer. This provides a business with a powerful way to prevent its ex-employees from competing against their former employers.

As with many things, reasonably drafted non-compete agreements may have made sense at one time. However, many employers are now overly aggressive and try to use non-compete agreements to unfairly limit competition and prevent their employees, even low-level employees or employees who have had no exposure to a company’s confidential information or trade secrets, from leaving and working for a competing company.

I have extensive experience reviewing and litigating non-compete agreements for employees and individuals who have been accused of violating a non-compete agreement.

Please feel free to contact me if you are an individual who needs help defending against a claim that you have violated a non-compete agreement.