The Michigan non-compete and non-solicitation agreement is a contract that protects an employer’s business interests by having their employee agree not to compete with their business for a set period of time following the termination of their employment. The non-solicitation section of the agreement obligates the signatory to refrain from hiring fellow employees or soliciting clients for their own business. Once the agreement has been signed, it will remain effective for the duration of the employee’s employment and for a set period of time afterward. The employer can also the prohibit the employee from working in the same industry within certain geographical limits. Although there are no state limits on how prohibitive a non-compete contract may be, if there is a dispute, the employer must be able to prove to a court that the contract’s terms are reasonable.
Laws – § 445.774a
Non-Compete Limit – Must be demonstrably reasonable relative to the duration, geographical limits, and type of employment (§ 445.774a).
Non-Solicitation Limit – No set limit, but the duration must be reasonable.