Protecting Michigan Employees From Unfair Noncompete Agreements
One of the most common legal questions we are asked at Hurwitz Law PLLC is whether noncompete or nonsolicitation agreements are enforceable. The answer is always fact-intensive and legally complicated. Michigan courts are often inconsistent in how they apply the law on restrictive covenants (which include noncompete agreements).
There are many variables at play in determining whether these agreements are enforceable, including:
- The duration of the restriction
- Its geographic scope
- The specific restrictions
As employment lawyers, we provide individualized guidance on the enforceability of these restrictions in Ann Arbor and surrounding areas.
What To Do When You First See The Fine Print – Years Later
Often, the first time an employee reviews their noncompetition agreement is years after they signed it at the outset of their employment. As employment attorneys, we have seen this situation play out so many times. Employees feel like they lack bargaining power and agree to one-sided language such as a noncompete or nonsolicitation provision, only to deeply regret the decision later on.
Most employees believe that the company will not enforce the agreement by attempting to restrict their future employment. Instead, employees find themselves being served with a “cease and desist” letter demanding they voluntarily resign their job.
The majority of the times that this occurs, a compromise can be achieved with the former employer – usually by negotiating new terms that the employee can abide by that do not threaten the former employer’s legitimate competitive business interest. It is critical that you contact an employment law attorney if you have questions about your noncompete or other restrictive covenant obligations.
How To Protect Yourself From The Start
To avoid issues with noncompetition agreements, be sure to follow these cardinal rules:
- Before signing a noncompete agreement, nonsolicitation agreement or other restrictive covenant, obtain a consultation from an attorney, ideally at the beginning of your employment.
- Before you leave your current employer, get a consultation on how to proceed safely under your current employment agreement.
- If you are threatened with legal action after you leave your employer, do not hesitate to find an employment law attorney. Your former employer can seek an ex parte temporary restraining order against you, meaning you will be prevented from working before you even get to tell your side of the story.
At Hurwitz Law PLLC, we focus exclusively on representing employees. Whether you’re reviewing a new job offer, planning a career move or facing legal threats from a former employer, we’re here to help. We will evaluate your agreement, explain your rights and advocate for your ability to work freely and fairly.
Frequently Asked Questions About Michigan Noncompete Disputes
Employees in Ann Arbor and surrounding Michigan communities often have urgent questions when a noncompete issue arises. Below are direct answers to some of the most common concerns employees face when planning a career move or responding to threats from a former employer.
What evidence do employers use to prove a noncompete violation?
Employers typically try to prove a noncompete violation by relying on digital records, communications and employment activity that suggest competition or solicitation. Common examples include emails, forwarded customer lists, downloaded files, LinkedIn profile changes, public job announcements, device access logs and communications with former clients or co-workers.
Some employers also review company laptop data, phone records, cloud access logs and document transfer history to argue that confidential information was taken or used. They may also compare the timing of your departure and new employment to claim that client relationships or proprietary information were immediately put at risk.
Our experienced employment attorneys can evaluate whether that evidence actually supports a violation or whether the employer is overstating the facts.
Can I keep working while a noncompete dispute is pending?
Yes, in many cases you may continue working while the dispute is pending, unless a court orders otherwise. A cease-and-desist letter alone does not automatically require you to resign or stop working.
However, an employer may file for a temporary restraining order or preliminary injunction asking the court to temporarily prevent you from continuing in the role. Because these requests can move quickly, working with us immediately is critical to protecting your right to remain employed.
Is my noncompete still valid if I was laid off or fired?
Yes, a noncompete may still remain enforceable even if you were laid off or terminated, but enforceability depends on whether the restriction is reasonable under Michigan law. Courts generally examine the duration, geographic scope and whether the employer has a legitimate business interest to protect.
The fact that you were involuntarily separated can still be an important factor when evaluating fairness and enforceability. Our skilled employment attorneys can review the circumstances of your separation and determine whether the agreement may be challenged.
Because noncompete disputes are highly fact-specific, early legal guidance can often help prevent unnecessary career disruption. If you have questions about a cease-and-desist letter, a new job opportunity or whether your agreement is still enforceable, Hurwitz Law PLLC can help you understand your rights and next steps.
Learn How We Can Help
Don’t let a noncompete agreement hold your future hostage. If you want to know anything about restrictive covenants, please contact us by calling 844-HURWITZ or complete our online form. We can help!