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?
Whether or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. Although the interests of employers are important, courts in Michigan also give priority 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. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around St. Clair Shores that are unreasonably large.
Non-compete clauses are also limited in that they can only apply to competitors who are reasonably related to the industry of the employer. Lastly, the employer needs to have an acceptable business interest which justifies their motives in requiring their employee to sign a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
You may want to hire a St. Clair Shores, Michigan lawyer to review the covenant before signing any agreements that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or 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.