Michigan Employee Noncompetition and Conflict of Interest Agreement

State:
Multi-State
Control #:
US-AHI-052
Format:
Word; 
Rich Text
Instant download

Description

This AHI form is an agreement regarding non-compete and conflict of interest. The agreement states that the employee must wait a certain period of time after expiration/termination before they can directly or indirectly work with a competing company.

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FAQ

How do I get around a non-compete agreement?Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...

The amount of time that is reasonable may vary depending on the circumstances. However, Michigan courts have generally found non compete agreements lasting up to a year to be reasonable and those lasting longer than three years to be unreasonable.

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)

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.

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.

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.

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.

Written vs verbal contracts If you don't have a written contract, you can take any job whether it's with a competitor or not. But if there is a written one and it contains 'restrictive covenants', your employer could stop you from working for a competitor for a set period of time.

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.

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Michigan Employee Noncompetition and Conflict of Interest Agreement