February 12, 2015, Introduced by Rep. Lucido and referred to the Committee on Commerce and Trade.
A bill to amend 1984 PA 274, entitled
"Michigan antitrust reform act,"
by amending section 4a (MCL 445.774a), as added by 1987 PA 243.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
An employer A
purchaser of business goodwill or a
interest may obtain from an
owner, principal, or
of the seller's business an agreement
an employer's the purchaser's reasonable competitive
interests and expressly prohibits
an employee that owner,
principal, or officer from engaging in employment or a line of
termination of employment the
sale if the agreement
or covenant is reasonable as to its duration, geographical area,
the type of employment or line of business. To the extent
the agreement or covenant is found to be unreasonable in
respect, a court may limit the agreement to render it reasonable in
light of the circumstances in which it was made and specifically
enforce the agreement as limited.
This section shall apply to covenants and agreements which are
entered into after March 29, 1985.
(2) An agreement under this section is enforceable only if it
is in writing and meets both of the following conditions:
(a) It is entered into in connection with the sale of business
goodwill or a business interest.
(b) It is entered into at the time of the sale of the business
goodwill or business interest by an individual who is an owner,
principal, or officer of that business.
(3) Except as provided in subsections (1) and (2), any term in
an agreement an employer obtains from an employee, contract
laborer, or other individual that prohibits or limits the
individual from engaging in employment is void.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.