HB 4399 Michigan House · 2023-2024 Regular Session

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