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 Ishpeming that are unreasonably large.
The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Finally, the covenant not to compete must have a legitimate 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 you sign any provisions that could restrict your rights, you may consider hiring an Ishpeming, Michigan attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.