Home > Uncategorized > Business Law Update: Proposed Michigan Bill To Limit Non-Competition Covenants.

Business Law Update: Proposed Michigan Bill To Limit Non-Competition Covenants.

 

A Michigan Bill proposes amending the Michigan Antitrust Reform Act to narrow the scope of when covenants not-to-compete are enforceable in Michigan.

You can look at the June 12th proposed amendment, here

 

The Narrowing of  the Covenants Not-t0-Compete (CNC) will do as follows:

1. Make CNC unenforceable if the employee is terminated (CNC would only apply if an employee resigns)

 

2. Make CNC unenforceable unless the employer does the following:

a. at the time of the initial offer of employment notifies employee in writing that employment is conditioned upon entering a CNC; and

b. give the same notice to applicants in any job posting.

 

 

The Bill was referred to the committee on commerce – and that is where it has been for the last few weeks.

 

This Bill does not affect other covenants that protect legitimate business interests such as:

 

  • Covenants not to solicit; (employees, vendors, clients, etc…)

 

  • Confidentiality Covenants (protect trade secrets, customer lists, files, etc…)

(which are typically easier to enforce in court, anyway)

 

 

questions? Comments?

 

Email me: Jeshua@dwlawpc.com

http://www.dwlawpc.com

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