The bill amends the Michigan Antitrust Reform Act by introducing significant changes to the regulation of noncompete agreements between businesses and workers. It prohibits businesses from entering into, obtaining, or enforcing noncompete agreements with workers, except under specific conditions. These conditions include scenarios where the worker is an owner selling their business or is responsible for the sale of the business's assets. Additionally, any noncompete agreement must protect only reasonable competitive interests, have a reasonable duration, and restrict competition solely within the relevant market and type of trade.

Furthermore, the bill establishes that any noncompete agreements that violate these provisions are void and unenforceable. 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 certain conditions. The amendments take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 445.774