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MI HB5690

Bill

Status

Introduced

6/12/2014

Primary Sponsor

Gretchen Driskell

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Origin

House of Representatives

97th Legislature

AI Summary

  • Amends Michigan's antitrust reform act to clarify that non-compete agreements must protect "the employer's reasonable competitive business interests" and only apply when an employee voluntarily leaves employment.

  • Changes language from "termination of employment" to "the employee voluntarily leaves" to limit non-compete enforcement to voluntary departures rather than involuntary terminations.

  • Requires employers to inform prospective employees in writing about non-compete agreement requirements at or before the time of the initial job offer.

  • Requires employers to disclose in any job posting or advertisement that acceptance of a non-compete agreement is a condition of hire.

  • Allows courts to limit unreasonable non-compete agreements in terms of duration, geographical area, and type of employment, and to enforce the modified agreement.

Legislative Description

Labor; fair employment practices; disclosure of noncompete agreement; require at initial offer of employment. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

Labor, fair employment practices

Last Action

Printed Bill Filed 06/13/2014

7/16/2014

Committee Referrals

Commerce6/12/2014

Full Bill Text

No bill text available