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MI HB4399
Bill
Status
4/12/2023
Primary Sponsor
Denise Mentzer
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AI Summary
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Requires employers to provide written notice to job applicants about noncompete agreement requirements, disclose agreement terms before hiring, and post a summary of requirements at the worksite.
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Prohibits employers from requiring 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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Voids and makes unenforceable any noncompete agreements obtained in violation of these requirements, along with waiver clauses and choice of law provisions that negate the requirements.
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Imposes civil fines of up to $5,000 per employee or applicant for violations of low-wage employee protections.
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Shifts burden to employers to prove an employee is not low-wage and that agreement terms are reasonable; allows courts to void or limit unreasonable agreements and award employees attorney fees, court costs, and lost income.
Legislative Description
Labor: fair employment practices; certain noncompete agreements; prohibit employers from requiring employees to enter into unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).
Labor: fair employment practices
Last Action
Placed On Third Reading
12/11/2024