MI HB4040

Prohibits businesses from entering into, enforcing, or representing that noncompete agreements apply to workers, including employees, independent contractors, interns, volunteers, and apprentices

Creates an exception allowing noncompete agreements only when a business owner is selling the business or their ownership interest, and when the agreement protects reasonable competitive interests with reasonable duration and geographic scope

Declares any noncompete agreement violating these provisions void and unenforceable, including terms that waive requirements, require out-of-state adjudication, or force workers to pay arbitration costs

Allows aggrieved workers to sue for damages, with courts required to award attorney fees and all income lost due to actual or threatened enforcement of illegal noncompete agreements

Preserves enforceability of confidentiality/trade secret agreements and non-solicitation agreements for workers earning more than 200% of the federal poverty line (for a family of 3) that expire within 1 year of leaving employment