Michigan Employee Noncompete (Noncompetition) Agreement
Description
How to fill out Employee Noncompete (Noncompetition) Agreement?
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FAQ
An example of a non-competition is a contract that prevents a marketing manager from working for a competing company in the same industry for one year after leaving their job. This type of restriction protects proprietary information and customer relationships. However, it’s important that the terms are reasonable and specific to the Michigan Employee Noncompete (Noncompetition) Agreement. Consulting with a legal platform like uslegalforms can provide templates and guidance to create effective agreements.
The 90-day non-compete clause restricts employees from engaging in similar business activities for a period of 90 days after they leave a company. This type of clause aims to protect a business's interests without being excessively punitive. To be effective under the Michigan Employee Noncompete (Noncompetition) Agreement, this clause should include clearly defined terms. It's beneficial to seek legal advice to ensure that it meets the necessary criteria for enforceability.
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.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
In Michigan, non-compete agreements are enforceable to a limit. The Michigan Antitrust Reform Act (MARA) limits these agreements to factors of reasonableness.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
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.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
However, courts have generally followed the rule that one year is reasonable, three years is rarely reasonable, and two years is dependent on the facts. Courts have, however, upheld agreements for durations longer than three years.
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.
