The bill amends the Michigan Antitrust Reform Act by introducing new provisions regarding noncompete agreements between businesses and workers. It prohibits businesses from entering into, obtaining, enforcing, or representing noncompete agreements with workers, with specific exceptions for owners selling their business or those responsible for selling the business's assets. The bill outlines conditions under which a noncompete agreement may be valid, including that it must protect reasonable competitive interests, have a reasonable duration, and restrict competition only in the relevant market and type of trade.

Additionally, the bill declares certain noncompete agreements void and unenforceable if they violate the new provisions. It allows aggrieved workers to take legal action to recover damages, including attorney fees and lost income due to enforcement of the noncompete agreement. The bill also clarifies that it does not limit the enforceability of agreements related to confidentiality or solicitation under specific conditions. The amendments take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 445.774