The Clause About Working Elsewhere
MCL 445.774a — reasonable in duration, area and type of work, or limited by the court
In Michigan, an employer may obtain from an employee an agreement that protects the employer's reasonable competitive business interests and prohibits the employee from working in a line of business after termination, if it is reasonable as to its duration, geographical area, and the type of employment or line of business.
A court may cut it down rather than strike it. To the extent such an agreement is found unreasonable in any respect, a court may limit it to make it reasonable in light of the circumstances in which it was made, and enforce it as limited.
| The assumption | What the law actually does |
|---|---|
| The assumptionAn unreasonable clause is thrown out entirely | What the law actually doesA court may limit it and enforce the reasonable part |
| The assumptionAny noncompete is valid in Michigan | What the law actually doesIt must protect a reasonable competitive business interest and be reasonable in its limits |
Non-solicitation and confidentiality agreements, trade secret law and the sale of a business follow rules of their own and are not all on this page. Whether a particular clause is enforceable is a question for a licensed Michigan attorney.
Sources for this section (1)
- MCL 445.774a — Agreement or covenant protecting business interests of employer
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Michigan attorney.