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 Noncompetition For Us Treasuries In Michigan
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Multi-State
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US-00046
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1 Michigan courts continually uphold and enforce non-competes. 2 However, recent non-competes in Michigan have been subject to debate because of the many disadvantages such clauses pose to employees.
Under the Noncompete Rule, the FTC adopted a comprehensive ban on new noncompetes with all workers, including senior executives. The final Noncompete Rule provides that it is an unfair method of competition—and therefore a violation of Section 5—for employers to enter into noncompetes with workers.
There are many legal defenses against enforcement of a non-compete or non-solicit agreement. For example: The agreement is overbroad in its time or geographic scope. The scope of the non-compete or non-solicit may be overbroad in geography or time.
In Michigan, non-compete agreements are generally enforceable if they are reasonable in scope, duration, and geographical limitation. They must also protect a legitimate business interest, such as trade secrets or customer relationships.
Though Michigan anti-trust law currently permits non-compete contracts in certain limited circumstances, Michigan's Attorney General has praised the new FTC rule stating: “My office has seen firsthand the detrimental impact non-compete agreements have on Michigan workers, hindering their ability to explore better job ...
“(The rule) is hereby SET ASIDE and shall not be enforced or otherwise take effect on September 4, 2024, or thereafter.”
1 Michigan courts continually uphold and enforce non-competes. 2 However, recent non-competes in Michigan have been subject to debate because of the many disadvantages such clauses pose to employees.
SCOPE, DURATION, AND GEOGRAPHY In Michigan, broad or excessively restrictive non-compete clauses can render an agreement unenforceable. Courts may either void the agreement or modify it to align with what's deemed “reasonable.”
If you are employed as a “just cause” employee and you choose not to sign the noncompete agreement, the Michigan courts have found that the refusal to enter into such agreement individually does not constitute “just cause” for termination.
(c) Employee name agrees not to set up in business as a direct competitor of company name within a radius of number miles of company name and location for a period of number and measure of time (e.g., “four months” or “10 years”) following the expiration or termination of this agreement.