Enforceability Of Noncompete Agreements In Michigan

Non-compete agreements in Michigan are subject to the Michigan Antitrust Reform Act and the state and federal jurisprudence that governs this statute. Under this Act, to be applicable, non-compete agreements (1) must be used to protect an employer`s appropriate competitive interests; (2) have an appropriate duration; (3) have an appropriate geographic scope; and (4) to prohibit competition only in a clearly defined industry. Non-competition prohibitions are generally strongly designed in favour of an employer. Ideally, it is best to take steps before signing a non-competition agreement to ensure that it is on a more uniform keel. But even after signing a competition, you may have legal opportunities that can help you practice your chosen profession more freely. If you are asked to sign a non-competition agreement before doing so, ask for some time to review it and direct it through a lawyer. Companies expect experienced employees to do just that, and you don`t risk anything by asking for the opportunity. If you already have a non-competition clause and want to challenge it by revealing the unreason of one of the four factors or by reporting a construction problem such as lack of consideration, you can cancel or modify the agreement. In both cases, the assistance of an employment lawyer, who is familiar with the rules of non-competition, is essential. An employer may decide not to hire you if you refuse to sign a non-compete agreement. If you are already busy and are faced with a non-compete agreement, applicability may depend on your employment status. If you are occupied with „at-will“ status and decide not to sign the non-compete contract, the employer may terminate you.

If you are a „fair“ employee and decide not to sign the non-compete agreement, the Michigan courts have found that the refusal to enter into such an agreement individually is not „just a reason“ for termination. On the other hand, if you decide to sign the contract, the employer must keep you for a „reasonable“ time afterwards. If you are fired shortly after signing the contract for no reasonable reason, the non-competition agreement may be non-binding. In other words, the employer cannot use this type of contract as an excuse to free itself from a potential future competitor; He cannot have sent you back in „bad faith.“ Some courts have cancelled agreements unless, in exchange for your signature, a new benefit – such as a higher salary, a bonus, more ancillary benefits or a promotion – is promised. I have extensive experience in representing employers in the preparation and enforcement of non-compete agreements. I also have extensive experience in representing people accused of violating a non-compete agreement. Questions about the applicability of a non-compete agreement in Michigan? Abraham Lincoln once noticed that if he had six hours to cut down a tree, he would spend the first four sharpening the axe.