Michigan Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

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.

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Julie G.

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Traverse City, MI
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Licensed in MI
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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.

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Sault Ste. Marie, Michigan
24 Yrs Experience
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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.

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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.

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Lawyer Reviews for Michigan Noncompete Agreement Projects

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"Faryal, delivered guidance I needed with good communication."

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"Absolutely incredible person super responsive and willing to help me navigate through a challenging situation. Allen is top notch, professional, and comprehensive."

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"Helped with everything I needed and very responsive!"

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"Robert was very helpful and responsive. I had my questions answered and had suggestions on how to make the agreement more fair. I would definitely work with Robert again."

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Employer

Noncompete Agreement

Florida

Asked on Jul 6, 2023

How to draft a noncompete agreement?

I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.

Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

Read 1 attorney answer>

Employment

Noncompete Agreement

New York

Asked on Jun 29, 2023

Noncompete agreement breach consequences?

I recently left my job as an employee at a company that I had worked for for over a year. I was asked to sign a noncompete agreement when I began the job, which I did. I have since started a new job in the same industry as my former employer, which is in violation of the noncompete agreement. I am now wondering what the consequences of this breach of contract may be and am seeking legal advice.

Gregory F.

Answered Jul 6, 2023

I would be happy to schedule a paid telephone consultation with you to review the non-compete agreement, advise you on its scope and enforceability, and answer your questions. Please contact me via email at greg@fidlonlegal.com to discuss.

Read 1 attorney answer>

Employee Rights

Noncompete Agreement

Georgia

Asked on Jul 4, 2023

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.

Answered Aug 4, 2023

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

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Employee Rights

Noncompete Agreement

California

Asked on Sep 12, 2022

i work for a employer from illinois ,however i am in california. My contract has non compete clause. will that be enforceable

My employer has placed me in a position thru another vendor. My employer contract with that vendor is ending. So vendor contacted me. However I am in contract with my employer for 1 year contract.

Christopher M.

Answered Sep 13, 2022

Short answer: Probably no, non-compete and non-solicitation clauses are not usually enforceable on an employee in California. Long Answer: Regardless of the choice of law provision in your contract, if an enforcement action is brought against you in California, the California courts will dismiss it as it goes against the "public policy of the state" unless your employer can make a really compelling case. Most states respect the stated public policy of other states when deciding matters against their citizens, so even if the case was brought in another states courts your soon to be former employer would probably be powerless to get a judgement enforcing your non-compete.

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Contracts

Noncompete Agreement

Florida

Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

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