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Showing posts from June 24, 2018

The BUSKLAW July Newsletter: Horsing Around with Non-Compete Clauses

Non-compete provisions are part and parcel of many employment agreements. But these provisions must be carefully drafted to be enforceable. There are three sure-fire ways to have a court invalidate your non-compete clause without much judicial cogitation:
Failure to provide a reasonable duration for the clause;Failure to restrict the operation of the clause to a reasonable geographic area; andFailure to establish a protectable business interest as the subject of the clause.The first point is easy to grasp. In Michigan, you are on solid legal ground if the duration of your non-compete clause doesn't exceed one year. And you are probably okay if you add a year to that. But you're walking on quicksand if your non-compete provision lasts longer than two years. 
The second point is a bit more complicated. Courts don't like to enforce a non-compete clause if its geographical scope is too wide. For example, if I'm in the packaged ice business and sell my product mostly to retai…