Tag Archives: Michigan noncompete law

When it Comes to Enforcing a Noncompete Agreement is Timing Everything?

A recent noncompete case from Minnesota offers a cautionary tale for employers and cause for celebration for employees. The case, Safety Center, Inc. v. Stier, (11/6/17), involved an employer that ran a treatment center for special-needs sex offenders. The employer sought to enforce its noncompete agreement against a former program director (Stier). The noncompete agreement … Continue Reading

Changes to the Michigan Business Court

Amendments to the Michigan Business Court Statute 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 that … Continue Reading

Noncompete Litigation Between Papa John’s and Panera – Lessons For Protecting Competitive Advantages

Earlier 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. … Continue Reading

Four Take-Aways from an Employer’s Misuse of Overly Broad Noncompete Agreements

Using 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 … Continue Reading

Noncompetition Agreements – Impediment to Employee Mobility and Innovation?

The 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 employers appear … Continue Reading

CEO’s “Reckless Texting” Wrecks Lawsuit to Enforce Noncompete Agreement

Texting as a reckless activity is well-documented when it comes to driving. It is also noted as an increasing health hazard for “petextrians” (pedestrians who are texting, clever huh?) according to Ben Zimmer of the Wall Street Journal in his article “What Do You Call a Reckless Texter?” But can it be “reckless” for your company’s non-compete agreements? … Continue Reading

Dissecting an Injunction Hearing for Enforcing a Non-compete Agreement

In noncompete lawsuits, whether a preliminary injunction should be issued is a critical battle that in large part determines the direction of the lawsuit. For this reason, a recent decision denying a former employer’s motion for injunctive relief in a non-compete enforcement action provides critical insight for companies and individuals. Court Denies Preliminary Injunction in … Continue Reading

Language Counts when it Comes to Enforcing Non-compete Agreements

Companies commonly rely on non-compete restrictions to protect their competitive business interests. But if such post-employment restrictions are not properly drafted, those agreements may not be enforceable if challenged in court. Overview of Non-compete Restrictions Briefly, non-competition restrictions prohibit an employee from going to work for a competitor of a former employer. Such post-employment restrictions … Continue Reading

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 can … Continue Reading

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 Supreme Court decision … Continue Reading

Enforceable Noncompete Agreement Key to $2 Million Judgment Against Former Employee

A recent Michigan trial court decision from the Oakland County Circuit Court illustrates the significance that noncompete agreements can have for employers and individuals who sign such agreements.  Specifically, Crain’s Detroit Business reported that an Oakland County Circuit court entered a judgment in excess of $2 million against Matt Prentice, a former employee and a well-known Metro … Continue Reading
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