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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 using a business's information against it. This remedy provides a business with a powerful remedy to protect its competitive business interests against dishonest ex-employees who would otherwise seek to unfairly compete with their former employers.

On the other hand, some employers are overly aggressive and try to use non-compete agreements to unfairly limit competition and prevent their employees from leaving and working for a competing company.

I have extensive experience representing employers in preparing and enforcing non-compete agreements. I also have extensive experience in representing individuals who have been accused of violating a non-compete agreement.

Please feel free to contact me if you are an employer who needs help preparing or enforcing a non-compete agreement. Also, 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.

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