Labor: fair employment practices; certain noncompete agreements; prohibit employers from requiring employees to enter into unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).
This bill prohibits employers in Michigan from requiring employees, independent contractors, or interns to sign noncompete agreements, which are contracts that prevent workers from working for competitors after leaving their current job. The law allows noncompetes only in specific situations, such as when a business owner sells their company or when a worker is highly compensated and restricted from soliciting clients rather than competing directly. Agreements that violate these rules are declared unenforceable, and workers who face penalties for breaking them can sue for lost wages and legal fees. However, the bill does not ban agreements protecting trade secrets or those restricting client solicitation under strict conditions, such as a high salary and a one-year limit.
Bill status
passed
3 of 5 stages cleared
Introduction
Apr 2023
Committee Review
Dec 2024
House Passage
Dec 2024
Senate Passage
Governor
Introduced Apr 12, 2023
Last action Dec 11, 2024
Floor votes
How they voted
This bill passed the House by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
9
Key actions
2
Committee
3
Dec 11, 2024
Lower · Passed
substitute (H-2) adopted
lower
Dec 5, 2024
Committee
referred to second reading
lower
Dec 5, 2024
Lower · Passed
reported with recommendation with substitute (H-2)
lower
Apr 12, 2023
Committee
referred to Committee on Labor
lower
Apr 12, 2023
Introduced
introduced by Representative Denise Mentzer
lower
1 primary · 13 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Denise Mentzer
DDemocratic
Co
Alabas Farhat
DDemocratic
Co
Brenda Carter
DDemocratic
Co
CM
Christine Morse
DDemocratic
Co
FB
Felicia Brabec
DDemocratic
Co
Helena Scott
DDemocratic
Co
JH
Jim Haadsma
DDemocratic
Co
Kara Hope
DDemocratic
Co
Kelly Breen
DDemocratic
Co
Natalie Price
DDemocratic
Co
Penelope Tsernoglou
DDemocratic
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