Michigan Employee Noncompete (Noncompetition) Agreement
Description
How to fill out Employee Noncompete (Noncompetition) Agreement?
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FAQ
Duration Typically one year is a reasonable amount of time, but the duration varies depending ono the employer and job position. Geographical areas The geographic area listed in the non-compete agreement varies depending upon the type and size of the business.
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.
In Michigan, non-compete agreements are enforceable to a limit. The Michigan Antitrust Reform Act (MARA) limits these agreements to factors of reasonableness.
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)
Michigan courts will enforce noncompetes that are reasonable. Just what is reasonable is a matter of balancing the employer's business interest against the right of the employee to work and earn a living in his or her trade.
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.
However, courts have generally followed the rule that one year is reasonable, three years is rarely reasonable, and two years is dependent on the facts. Courts have, however, upheld agreements for durations longer than three years.
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.
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
