A Michigan Bill proposes amending the Michigan Antitrust Reform Act to narrow the scope of when covenants not-to-compete are enforceable in Michigan.
You can look at the June 12th proposed amendment, here
The Narrowing of the Covenants Not-t0-Compete (CNC) will do as follows:
1. Make CNC unenforceable if the employee is terminated (CNC would only apply if an employee resigns)
2. Make CNC unenforceable unless the employer does the following:
a. at the time of the initial offer of employment notifies employee in writing that employment is conditioned upon entering a CNC; and
b. give the same notice to applicants in any job posting.
The Bill was referred to the committee on commerce – and that is where it has been for the last few weeks.
This Bill does not affect other covenants that protect legitimate business interests such as:
- Covenants not to solicit; (employees, vendors, clients, etc…)
- Confidentiality Covenants (protect trade secrets, customer lists, files, etc…)
(which are typically easier to enforce in court, anyway)
questions? Comments?
Email me: Jeshua@dwlawpc.com
Purpose Driven General Counsel 
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