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MI HB6031
Bill
Status
4/14/2022
Primary Sponsor
Mari Manoogian
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AI Summary
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Prohibits employers from obtaining noncompete agreements from low-wage employees, defined as minors or employees earning less than 138% of the federal poverty line for a family of three.
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Requires employers to provide written notice of noncompete agreement requirements to job applicants, disclose agreement terms in writing before hiring, and post the act or a summary at the worksite.
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Voids and makes unenforceable any noncompete agreements obtained in violation of these requirements, as well as any waiver or choice of law provisions that would negate the law's requirements.
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Imposes a civil fine of up to $5,000 per employee for employers who violate the low-wage employee prohibition, with fines deposited in the state treasury.
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Shifts burden of proof to employers in enforcement actions to demonstrate the employee was not low-wage and that duration, geographical area, and employment type are reasonable; requires courts to award attorney fees and lost income damages if an agreement is voided or limited.
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
Bill Electronically Reproduced 04/14/2022
4/26/2022