Michigan HB4040 prohibits employers from requiring employees to enter into noncompete agreements unless specific conditions are met.

Michigan HB4040 amends the Michigan Employment Relations Act to restrict employers from requiring employees to enter into noncompete agreements unless certain conditions are met. Employers cannot require employees to enter into noncompete agreements unless the worker is an owner selling the business or the agreement meets specific criteria. These criteria include protecting only the business's reasonable competitive interests, having a reasonable duration, restricting competition only in the relevant market, and restricting competition only to the same type of trade or commerce.

Michigan HB4040 prohibits employers from requiring employees to enter into noncompete agreements unless specific conditions are met.

Michigan HB4040 amends the Michigan Employment Relations Act to restrict employers from requiring employees to enter into noncompete agreements unless certain conditions are met. Employers cannot require employees to enter into noncompete agreements unless the worker is an owner selling the business or the agreement meets specific criteria. These criteria include protecting only the business's reasonable competitive interests, having a reasonable duration, restricting competition only in the relevant market, and restricting competition only to the same type of trade or commerce.