Restrictive Covenants For Employees In Michigan
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The board of directors of a Michigan homeowners association has a duty to enforce the various regulations contained in the restrictive covenants, declaration or deed restrictions as written, subject to limited exceptions.
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 courts will enforce noncompetes that are “reasonable.” Just what is reasonable is a matter of balancing the employer's business interest against the right of the employee to work and earn a living in his or her trade.
The board of directors of a Michigan homeowners association has a duty to enforce the various regulations contained in the restrictive covenants, declaration or deed restrictions as written, subject to limited exceptions.
Act 234 of 2022 AN ACT to prohibit the recording of deeds or other instruments relating to real property that contain certain restrictive covenants or conditions; to make such restrictions unenforceable; and to provide remedies with respect to those instruments.
Some of the most common restrictive covenants include: Alterations and extensions to the building. Changes to the use of a property, for example, converting a building into flats or turning a house into business premises. Rent and lease restrictions. Limitations on pets. Limitations on home colour.
To officially end the restrictive covenants, it may be necessary to file a lawsuit seeking a declaration from a court that the covenants are no longer enforceable. This can be a complex legal process that may require the assistance of an attorney.
The primary remedy for breach of a Restrictive Covenant is a permanent injunction to restrain the breach. However, the courts have jurisdiction to award damages instead of an injunction.
If a deed restriction is not enforceable, you can choose to ignore it and take on the risk of a neighbor filing suit, or you can seek out a judge's ruling to have the covenant removed from the deed. Obtaining that ruling is easier when no one is actively enforcing the covenant.
An employee can challenge a restrictive covenant if they believe it is unreasonable or prevents them from finding suitable employment. If the covenant is too broad or not essential to protecting the employer's business, it may be deemed unenforceable by the courts.
