The bill amends the Michigan Antitrust Reform Act by modifying Section 4a to clarify the conditions under which employers can obtain noncompete agreements from employees. It specifies that employers may require such agreements to protect their reasonable competitive business interests, provided that these agreements are reasonable in terms of duration, geographical area, and the type of employment or business involved. If a court finds any aspect of a noncompete agreement to be unreasonable, it has the authority to limit the agreement to make it reasonable and enforceable.

Additionally, the bill introduces a significant restriction by stating that employers are prohibited from obtaining noncompete agreements from physicians. Any existing noncompete agreements between employers and physicians that contradict this new provision will be deemed void. This amendment aims to protect physicians' ability to practice without undue restrictions after leaving an employer, thereby promoting competition and access to healthcare services.

Statutes affected:
House Introduced Bill: 445.774