In general, covenants not to compete involve an employee in the state of Michigan who agrees not to work for competitors of their employer when they leave the company. Such covenants are often called "non-compete" clauses". Signing such an agreement can either be a condition for being employed, or the employee may receive additional compensation for doing so.

When are Covenants not to Compete Unenforceable?

Foreseeing whether or not a judge will uphold a covenant not to compete is generally difficult. While the employer?s interests are significant, Michigan courts place great weight on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. A court will usually hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Belding that is excessively large.

Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Lastly, the covenant not to compete must have a valid business purpose which is behind the employer's motivation for requiring the agreement.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Before signing anything that may restrict your rights, you might want to hire a Belding, Michigan attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or might even draft a new one that is acceptable to both parties Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.