The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.
Competition Non Competition With No One In Michigan
State:
Multi-State
Control #:
US-00046
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Word;
Rich Text
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FAQ
Under Michigan law, if a noncompete is challenged in court and parts of it are found to be reasonable while other parts are found to be unreasonable, the court has the discretion to limit the unreasonable portions of the agreement in order to make it enforceable.
There are several routes out of a non-compete agreement. Generally speaking, you must either show that the terms of a non-compete are unenforceable or reach a release agreement with other parties.
California is an outlier compared to most states; non-compete agreements are unenforceable. While employers can seek out other ways to protect confidential company information, a non-compete agreement will not accomplish those goals. Here's what you need to know about California non-compete enforceability.
There are several routes out of a non-compete agreement. Generally speaking, you must either show that the terms of a non-compete are unenforceable or reach a release agreement with other parties.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
There aren't exactly "loopholes" in a non-compete agreement that you can exploit, but there are situations where a non-compete agreement might be considered unenforceable.
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.
If you are employed with “at will” status and choose not to sign the noncompete agreement, the employer may choose to terminate you.
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.
A Michigan Standard Clause limiting an employee's solicitation of employees and customers during the term of the employee's employment and for a specified period after the employment relationship ends. It is intended for use by private employers.