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 frequently called "non-compete" clauses". Signing such an agreement may 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. Even if the employee's interests may be important Michigan courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Grosse Pointe Woods that are unreasonably large.

Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Lastly, there must be a legitimate 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?

Before signing anything that may restrict your rights, you may want to hire a Grosse Pointe Woods, Michigan attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or may even draft a new one that is acceptable to both parties When it comes to suing an employee for breach of a non-compete clause, an attorney can give valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.