Michigan is governed by the Michigan Antitrust Reform Act (MCL 445.774a), which allows non-compete agreements if they are reasonable. Unlike many states, Michigan courts will not rewrite (blue-pencil) an unreasonable non-compete — if the clause is overbroad, it is void in its entirety. This gives employees a meaningful defense against overreaching restrictions.
What is a Enforceability?
Under MCL 445.774a, an employer may obtain a non-compete from an employee if the agreement is reasonable considering the employer's interest, the employee's ability to earn a living, and the general public interest. Courts assess reasonableness based on duration, geographic scope, and scope of restricted activities. There is no statutory salary threshold and no maximum duration, but Michigan courts have consistently rejected restrictions they view as punitive or designed to prevent competition rather than protect legitimate interests.
Red flags to watch for
Michigan courts void non-competes that restrict employees beyond the territory where they actually worked or had meaningful customer contact. Nationwide restrictions for local roles are frequently invalidated.
While no hard cap exists, Michigan courts rarely enforce restrictions longer than 2 years. Beyond that, the employer must show an unusually strong legitimate interest.
A prohibition on any employment at a competitor, regardless of role, is typically overbroad in Michigan. The restriction must relate to activities that actually threaten the employer's protectable interests.
Michigan requires the non-compete to be part of a larger employment agreement supported by consideration. For mid-employment agreements, additional consideration beyond continued employment is required.
Michigan courts are skeptical of non-competes that protect only general skills or generic competitive advantage. A specific, identifiable interest must be at stake.
Your legal rights
Under MCL 445.774a, a court may declare an overbroad non-compete void. Unlike Georgia or Texas, Michigan courts will not reform a void clause — they either enforce it as written or throw it out entirely. This is an important distinction: if your non-compete is overbroad, it is unenforceable in its entirety. You can raise invalidity as a defense in litigation or seek a declaratory judgment.
Questions to ask before you sign
- 1Does the restriction match the actual geographic area where I worked or had customer contact?
- 2How long does the restriction last, and can the employer justify that duration?
- 3What specific activities are restricted — is it my entire profession or targeted competitive activities?
- 4What trade secrets or confidential information justifies the restriction?
- 5Was this presented at the start of my employment or later, and what consideration was provided?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.