Is It Legally Enforceable in Michigan?

Yes — as long as the employer has a reasonable need to protect their competitive business interests. The prohibitions are only enforceable if the established duration, geographic location, and type(s) of employment are considered reasonable by a court of law. (§445.774a)

Types of Solicitation to Prohibit

If it can be proven necessary to protect an employer’s business interests, a non-solicitation covenant can be customized to restrict a former employee from associating with their:

Former or current clients/customers
Former or current employees
Independent contractors
Other business relationships

What to Include

What should you include in a non-solicitation agreement.

To be considered reasonable in the eyes of the court, a non-solicitation agreement must include specific terms regarding:

1. Time Restraint

A non-solicitation covenant typically begins when the employee’s job is terminated. It should specify an end date that would be considered reasonable in order to protect the employer’s business interests.

2. Geographical Restraint

The agreement must bind the ex-employee to the terms in a specific geographic location that would be considered reasonable. Typically, the geographical restraint is limited to the employer’s location.

3. Specific Action

This section specifies the parties whom the ex-employee is prohibited from soliciting within the bounds of the established duration and geographic limit.

Michigan Non-Solicitation Agreement

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