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.




     Sec. 4a. (1) An employer A purchaser of business goodwill or a


business interest may obtain from an employee owner, principal, or


officer of the seller's business an agreement or covenant which


that protects an employer's the purchaser's reasonable competitive


business interests and expressly prohibits an employee that owner,


principal, or officer from engaging in employment or a line of


business after termination of employment the sale if the agreement


or covenant is reasonable as to its duration, geographical area,


and the type of employment or line of business. To the extent any


such the agreement or covenant is found to be unreasonable in any


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.


     (2) 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.