There are generally four factors to consider in determining the suitability of a non-compete clause in Michigan: the sector or type of employment, geographic area, duration, and competitive interest that the employer wishes to protect. If you are asked to sign a non-compete clause as a condition of employment or if you are concerned that you have already signed, you should have the help of an experienced labour lawyer. In both situations, a lawyer can advise you on how best to protect your own interests. The determination of an employee`s reasonable restrictions depends on the circumstances surrounding any agreement. In some cases, it may be useful to prevent an employee from working for a competitor within a radius of a few miles, while in other cases, the geographic area may be extended to the entire federal state or beyond. Most non-competitors also indicate a period during which the former worker cannot work for a competitor. This period must also be appropriate. This law has not yet arrived in the House of Representatives or the Senate, but it is something that employers should keep in mind. Similar efforts are being made in Congress to limit the non-competition of low-wage workers at the federal level. Michigan`s competition prohibitions are governed by the Michigan Antitrust Reform Act and the jurisprudence of the states and federal states that would interpret it.
Under this Act, competition prohibitions must, in order to be enforceable, be designed in such a way as to protect the appropriate competitive interests of an employer; 2. have a reasonable duration; (3) have an appropriate geographical coverage; and (4) prohibit competition only in a clearly defined sector of activity. A non-competition clause is a contract that appears either in your overall employment contract or as a separate document, which usually states that you will not perform the same type of activity as your employer if you leave your current job. Specifically, it is intended to protect the employer from the fact that you know this or that you use the „trade secrets“ you have acquired during your employment to compete with the employer of another company that performs a similar type of activity. I represent a great experience in representing employers in the preparation and application of non-competition rules. I also have extensive experience in representing people accused of breaching a non-competition clause. The field of business or the nature of the job application is related to what the non-competition clause specifically prohibits the worker. An appropriate distortion of competition may prohibit a former employee from working in a certain subset of a sector, but a non-compete clause prohibiting a former employee from working for a competitor in any capacity, even in a position that has nothing to do with the worker`s previous work, would be inappropriate.
Often, employees are asked to sign a non-compete agreement when they officially work for a new company or during the exit interview process if you are fired. An employer may even ask you to sign a no-compete clause in a job you`ve been working on for a while simply because he/she decided to „get smart“ or someone told him or her it was a good thing to protect his/her interests. Michigan`s non-competitors must also be limited to a given geographic area. The appropriate area depends on the nature and size of your business. Imagine this scenario. Your child is seriously ill. .