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 usually difficult. Although the interests of employers are significant, courts in Michigan also give importance to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an unusually long period of time or if they cover an unreasonably large geographic area around Fremont.
Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer's industry. Finally, there must be a valid business interest which motivates the employer's mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Fremont, Michigan lawyer can help you review the covenant before you sign any provisions that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. A lawyer can also render useful advice for employers who are contemplating suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.