Can an employment contract have a non-compete clause?

Yes, an employment contract in Michigan can have a non-compete clause. A non-compete clause is a clause in an employment contract that prevents an employee from working for a competitor or starting their own business in the same industry for a set period of time after leaving the job. In Michigan, non-compete agreements are subject to certain laws and regulations that require them to be reasonable and to protect legitimate business interests, such as trade secrets. A non-compete clause must be in writing and signed by both parties. The agreement must also be limited to a certain geographical area, type of business, and a reasonable time period. Additionally, Michigan courts have found that non-compete agreements cannot be used to limit an employee’s right to earn a living. For example, a non-compete clause that prevented an employee from working in the same industry for any employer for an unlimited amount of time would likely be considered unreasonable. Overall, non-compete clauses can be an effective way to protect businesses from unfair competition, but they must meet certain legal requirements in Michigan in order to be enforced.

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