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MI SB0483
Bill
Status
9/4/2019
Primary Sponsor
Mallory McMorrow
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AI Summary
Senate Bill 483 Summary
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Prohibits employers from requiring noncompete agreements from low-wage employees earning less than the greater of $15.00 per hour, 150% of Michigan's minimum wage, or $31,200 annually (adjusted annually for inflation).
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Requires employers to provide written notice of noncompete agreement requirements to job applicants and disclose full agreement terms before hiring, and post the act's requirements at the worksite.
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Makes noncompete agreements void and unenforceable if obtained in violation of these requirements or if they contain waiver provisions or choice of law clauses that negate the act's requirements.
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Authorizes the attorney general to enforce violations with civil fines up to $5,000 per affected employee, and shifts burden to employers in court to prove employees are not low-wage and that agreement terms are reasonable.
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Awards employees and injured parties actual defense costs including attorney fees and lost income if a court voids or limits an unreasonable noncompete agreement; applies to agreements entered into after the effective date (90 days after enactment).
Legislative Description
Labor: fair employment practices; employers requiring certain noncompete agreements; prohibit. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).
Labor: fair employment practices
Last Action
Referred To Committee On Government Operations
9/4/2019