Business involves competition. But not all competition is lawful. Two former employees found this out the hard way after a judge determined on May 22, 2015 that they had wrongfully started a competing business while they continued to work for their employer along with misappropriating trade secrets and engaging in other wrongful acts (Nedschroef
Michigan Court Orders Former Employee to Give Up Company, Move it, or Shut it Down After Violating Noncompete Agreement
Not many people would jump out of a plane and then worry about figuring out what to do about a parachute on the way down. But often times individuals take that approach when it comes to starting a new business or taking a job after having signed a non-compete agreement. And that lack of planning
The Foundation of Michigan Non-compete Law
Crain’s Detroit, by Dustin Walsh, reported last week that this year marks the 30 year anniversary of arguably the most significant Michigan court opinion concerning non-compete agreements. See “30 Years Later, A Noncompete Ruling has Been Forged into Law.” The case referenced in this article comes from a January 17, 1985 Michigan
Is Your Non-Compete Agreement Enforceable? Depends on What Law Applies.
A recent Delaware court case invalidating an employer’s non-compete agreement provides a cautionary reminder for companies with operations and employees in multiple states.
Specifically, in Ascension Ins. Holdings, LLC v. Underwood (Delaware, Jan. 28, 2015) the company, Ascension was incorporated in Delaware, but headquartered in California. California was also where the employee, Roberts Underwood worked.
Proposal Would Significantly Limit Use of Noncompete Agreements in Michigan
A proposed Michigan House Bill was recently introduced that would significantly limit the use of noncompete agreements (sometimes called covenants not to compete) in Michigan. Such agreements often restrict individuals from working for a competitor or other post-employment activities. 
Specifically, State Represntative Peter Lucido (R) introduced HB 4198 on February 12, 2015, which has since
Michigan Court Cuts Down Non-Compete Agreement
Abraham Lincoln once noted that if he had six hours to chop down a tree, he would spend the first four sharpening the axe. For employers, that sort of up-front attention to details is especially important when it comes to non-compete agreements. Otherwise, as a recent Michigan Court of Appeals illustrates, the only thing likely
Common Mistakes that Derail Enforcement of a Noncompete Agreement
Our law firm was recently hired to represent clients – former employees – being sued for allegedly violating a noncompete agreement, trade secret misappropriation, and other business related claims.
As is typical with these sorts of cases, the Plaintiff, the former employer, was seeking injunctive relief in the form of a temporary restraining order (TRO)
Is Your Non-compete Agreement Enforceable? Not Without a “Reasonable Competitive Interest”
“Sticking feathers up your butt, does not make you a chicken.“
Tyler Durden, Fight Club
Under Michigan law, one required element for having an enforceable non-compete agreement is a “reasonable competitive business interest.” But, like the chicken quote, business owners can’t expect to just stick the phrase “reasonable competitive business interest” into an
The Wildcard in Noncompete Litigation – The Judge
One of the most common questions I get asked by both business clients and individuals is whether their non-compete agreement is enforceable. As explained below, a number of points will determine the answer, but none are more important than what essentially amounts to a “wild card” — the judge deciding your case.
Attorney Brett Snider
Requiring a Current Employee to Sign a Non-compete Agreement: Will it be Enforceable?
Under Michigan law, requiring current employees to sign a non-compete agreement presents unique issues for employers when it comes to having an enforceable agreement.
Continue Reading Requiring a Current Employee to Sign a Non-compete Agreement: Will it be Enforceable?