Are non-compete agreements still enforceable in Michigan? This short video covers where Michigan law stands, how to draft restrictions that are more likely to hold up, and what to do when employees join or leave.
What this video covers
- Non-competes remain enforceable in Michigan, but only if reasonable
- Reasonableness looks at duration, geographic area, and the type of work restricted
- The employer must show the restriction protects a legitimate business interest
- Onboarding and offboarding steps that support enforceability
- Proposed legislation that could change the rules
What makes a Michigan non-compete enforceable?
The companion article explains that Michigan permits non-competes under the Michigan Antitrust Reform Act when they protect an employer’s reasonable competitive business interests and are reasonable in duration, geographic area, and type of activity. Courts look at each case on its own facts and ask whether the restriction goes further than needed to protect interests such as customer goodwill, trade secrets, or investment in specialized training. If a covenant is overbroad, a court may narrow it.
The article notes that the FTC’s effort to ban most non-competes nationwide fizzled after court setbacks, leaving state law in charge, while Michigan lawmakers have introduced bills that would restrict non-competes. For many sales or account roles, it describes six to twelve months as a common window.
Read the full article: Are Non-Competes Enforceable in Michigan? What Employers Need to Know
If you would like your restrictive covenants reviewed, contact Tishkoff PLC through our contact page or call 734.663.4077.
This video and page are for general informational purposes and do not constitute legal advice. Watching the video or reading this page does not create an attorney-client relationship. You should consult counsel for advice on your specific circumstances.