Michigan Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers
- Avg cost to draft a Non-Compete Agreement: $550.00
- Avg cost to review a Non-Compete Agreement: $360.00
- Lawyers available: 242 employment lawyers
- Clients helped: 340 recent noncompete agreement projects
- Avg lawyer rating: 4.98 (90 reviews)
Is a Non-Compete Agreement Enforceable in Michigan?
Yes. Under Michigan law, non-compete agreements are enforceable as long as the contract is deemed reasonable by the courts in the following three areas:
- The duration of the contract
- The restricted geographical area
- The type of employment or line of business
As legally binding contracts, non-compete agreements must also adhere to any laws that govern contracts. If a non-compete is missing any elements of a valid contract it could be ruled unenforceable.
How Long Does a Michigan Non-Compete Agreement Last?
Most Michigan non-compete agreements last between six months and three years. Three years is the maximum duration that courts have consistently ruled as reasonable for non-competes.
When determining if the duration of a non-compete is reasonable, courts will look at all the facts surrounding the case including the scope of restricted activities and the restricted geographic area.
How Do You Get Around a Non-Compete Agreement in Michigan?
To get around a non-compete agreement, an employee needs to prove to the court that the terms of the contract are unreasonable. This could be done by showing that the duration is too long, the geographic boundary is too larger, or the scope of the restricted activity is too broad.
Courts in Michigan are permitted to limit or edit overly broad or unreasonable non-compete agreements in favor of an employee to make the contract enforceable. This practice is called blue penciling.
What Voids a Non-Compete Agreement in Michigan?
A non-compete agreement will be void if it does not include all required elements of a valid contract. The elements necessary to form a contract are:
- Offer
- Acceptance
- Consideration
In most cases, courts will allow continued employment to meet the requirements of adequate consideration for a non-compete agreement. The exception to this rule is if the employee is in a fixed term contract. In this case, there is no consideration and the contract could be void unless there is additional consideration like monetary compensation.
Frequently Asked Questions
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Meet some of our Michigan Noncompete Agreement Lawyers
July 27, 2023
Julie G.
I graduated from Wayne State University in 1992 and was admitted to practice in Michigan the same year. I've been practicing in Traverse City since 1993. My goal is for clients to feel that I am accessible and prompt, while providing quality and affordable legal services.
December 12, 2023
Alexis L.
I am an attorney in Michigan. I attended Boston College for my undergraduate degree and Suffolk University Law School for my law degree. I have been practicing law for over 20 years.
February 7, 2024
Nuo Jia (Lois) L.
Attorney Lois Li is a bilingual business and commercial attorney licensed in Michigan, U.S. since 2014, in Ontario, Canada since 2015, and in New York, U.S. since 2020. As an attorney licensed in two countries, Lois leads Alpine Law’s US/China/Canada practice. She is experienced in legal and contractual transactions in both English and Chinese. Lois has over six years of experience in assisting clients with business operations and legal services, and is specialized in advising companies with legal needs in International Business, Securities law, Cryptocurrency – Block chain, and Fin-Tech. Having served as both an outside and an in-house counsel, Lois worked with many startup and small businesses. With a strong understanding of core business and the ability to translate business needs into legal requirements, Lois has assisted many companies to establish policies and procedures, and drafted and negotiated employment and transaction contracts. Further licensed as a Registered Nurse since 2010, Lois specializes in healthcare law and is experienced in FDA, HIPAA, Medicare and Medicaid regulations. She has assisted many businesses in the medical and healthcare industry.
Dany G.
Lawyer Vets APC is a digital legal practice founded on the idea that legal services should be available to all– Not just a privileged few. In support of this mission, we leverage technology to reduce overhead, increase productivity, and put more money in our client's pockets.
April 15, 2024
Justine F.
Versatile, analytical, detail-oriented California barred corporate attorney with a comprehensive real estate, transactional and finance background as in-house counsel to large real estate developers, asset and property management companies, Fortune 500 quick service retailers/restaurant franchisors and international energy franchisors (retail and gasoline/mini market). Strong analytical and problem-solving skills, work ethic and integrity. Enthusiastic and quick mastery of new responsibilities, technologies and business strategies.
May 21, 2024
Jason J.
Experiences corporate and general counsel. Particular expertise in all contract matters
May 23, 2024
Lauren K.
Experienced In-House Counsel
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Contracts
Noncompete Agreement
Florida
Noncompete agreement and severance packages?
I recently left my job of 5 years, where I had signed a non-compete agreement. I am now negotiating a severance package with my former employer and am unsure of what my rights and obligations are regarding the non-compete agreement. I am seeking clarification on how the non-compete agreement should be handled in relation to the terms of my severance package.
Diane D.
To be able to answer this question, I would need to see the agreements. No one can answer your question without seeing the agreements.
Employee Rights
Noncompete Agreement
Georgia
How does a noncompete agreement work?
I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.
Nancy B.
In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett
Employee Rights
Noncompete Agreement
Florida
Noncompete agreement geographic scope?
I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.
Daniel D.
The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.
Employment
Noncompete Agreement
Connecticut
Noncompete agreement and promotions?
I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.
Thomas L.
It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.
Business Contracts
Noncompete Agreement
California
Noncompete agreement time restrictions?
I am an entrepreneur who recently signed a Noncompete Agreement with a potential business partner, and I am looking to gain a better understanding of the time restrictions that are in place. I am concerned that the terms of the agreement may prevent me from pursuing other opportunities in the future and want to make sure I am aware of all the restrictions before making any decisions.
Gagandeep K.
The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.
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