Legal Question in Business Law in Michigan

Non-Compete

I have beeen with a company ABC since last ten years. They once attempted to have all employee sign non-compete forms. Everbody including me refused to do so. They however had us sign us recieving the employee hand book.At that time the employee hand book consisted of general rules like vacation and sick leave, insurance etc but non-compete forms were not included in the hand book at that time. They however inserted the non-compete pages into this hand book afterwards (without us knowing about it). The last page of hand book that we signed says that we the emplyees have 'acknowledge, read and understand that handbook and that these documents govern my employment at ABC Company'. The signatures were on the last page only. Can they legally stop me doing the business of similar nature in the same area. The insertion of non-compete pages that do not have my signatures can, in any way shape or form may legally hurt me. The hand book does not have even page numbers on it. Does Michigan law allows non-compete acts.

I will appreciate for a response.


Asked on 11/09/04, 10:29 pm

2 Answers from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Non-Compete

Michigan Law does allow non-compete agreements. However, they must be reasonable as to duration and scope, they cannot prohibit you from making a living. The real question is whether the company states in their manual whether the manual can be revised at any time by the company or wording to this effect.If not, then what they did is not legal and would probably be overturned by a court.

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Answered on 11/10/04, 1:19 am
Blake Lipman Law Office of Blake P. Lipman

Re: Non-Compete

I believe given the facts you have described that you would not be bound by the non-compete clause. That does not guarantee that you will not be sued by your former employer. They may sue just to show others that they intend to enforce the non-compete clause. Even so, I believe you would prevail. For more info, please contact my office at (248)851-3171.

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Answered on 11/11/04, 9:52 am


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