Amendments to the Michigan Business Court SRevising Michigan Business Court Disputestatute go into effect today, October 11, 2017. These amendments primarily focus on clarifying the cases that are to be assigned to business courts.

Also, the statute was amended to clarify a Business Court’s jurisdiction to hear business disputes involving equitable or declaratory relief. The amendment now clarifies

Noncompete Agreement and Unfair AdvantageNon-compete agreements are intended to prevent unfair competition. But they often create unfair advantages against employees and start-ups. And these unfair advantages adversely affect individuals and the overall economy. At least that is the take-away from a recent op-ed in the New York Times.

Noncompete Restrictions and the Economy

Specifically, Prof. Orly Lobel wrote in 

Business conflictEarlier this month a federal district court judge entered a temporary restraining order (TRO) against a former Panera executive and his new employer, Papa Johns. The TRO arose out of a lawsuit to enforce the former Panera executive’s non-compete agreement. That agreement restricted him from competing against Panera for one year after his employment ended.

Noncompete Agreements in M&A TransactionsThe decision to sell a company involves many considerations. One important – but often overlooked – consideration is the value that should be derived from having enforceable employee and non-compete agreements.

However, all too often, due diligence fails to critically assess the enforceability or transferability of non-compete restrictions. As discussed below, the value of the

overly broad noncompete restrictionsUsing a broad brush to draft noncompete agreements that are applied universally to a company’s workforce is increasingly coming under fire. And this exposes companies to unnecessary litigation risks, as well as legal fees associated with enforcement costs.

Employer Abuse of Noncompete Restrictions

A recent example of involves Law360 and its settlement with the New

Handcuff InnovationThe Wall Street Journal, by Aruna Viswanatha, recently asked whether Noncompete Agreements Hobble Junior Employees. Spoiler alert — they do. According to the Journal:

Noncompete agreements—common in computing and engineering jobs, where proprietary technology can be at stake—are spreading to other industries and stretching further down the corporate ladder. Labor-law experts say some