The bill amends the Michigan Antitrust Reform Act by revising 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 these agreements are reasonable in terms of duration, geographical area, and type of employment. If a court finds any aspect of a noncompete agreement unreasonable, it has the authority to modify the agreement to make it reasonable and enforceable.

Additionally, the bill introduces specific provisions regarding noncompete agreements with physicians. Employers with annual revenues exceeding $2 billion, or their subsidiaries, are prohibited from obtaining noncompete agreements from physicians, rendering any existing agreements void if they contradict this rule. However, exceptions are made for agreements that restrict physicians from working only with other employers that also meet the revenue threshold. The bill also defines "physician" in accordance with the public health code.

Statutes affected:
House Introduced Bill: 445.774