SENATE BILL No. 786

 

 

November 1, 2011, Introduced by Senators ROCCA, BIEDA and WARREN and referred to the Committee on Economic Development.

 

 

 

     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:

 

     Sec. 4a. (1) An employer may obtain from an employee an

 

agreement or covenant which protects an employer's reasonable

 

competitive business interests and expressly prohibits an employee

 

from engaging in employment or a line of business after termination

 

of employment 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 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 This subsection applies to

 

covenants and agreements which are entered into after March 29,

 

1985.

 

     (2) An employer shall not require and a court shall not

 

enforce an agreement or covenant under this section as a condition

 

of employment if the employer did not inform the employee of the

 

requirement at or before the time of the initial offer of

 

employment. This subsection applies to an agreement or covenant

 

entered into after the effective date of the amendatory act that

 

added this subsection.