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A covenant not to compete, or noncompetition clause, generally includes the specific terms under which an employee cannot engage with competing businesses. In Michigan's construction sector, this may cover geographical limitations and timeframes that a worker must honor after leaving employment. It aims to balance employee freedom and business protection, ensuring a fair environment.
A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.
Duration Typically one year is a reasonable amount of time, but the duration varies depending ono the employer and job position. Geographical areas The geographic area listed in the non-compete agreement varies depending upon the type and size of the business.
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.
Restrictive covenants can be excellent tools for employers to protect their business' reputation, competitiveness, and confidential information. And in Michigan, such covenants will generally be enforceable, provided that they are reasonable.
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.
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Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding.
Many Michigan employers utilize noncompete agreements. A noncompete agreement, which may also be referred to as a covenant not to compete, generally prohibits an employee from working for certain competitors over a given period of time after the employment relationship ends.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.