A Michigan non-compete agreement is a written contract in which an employee agrees not to work in a competing job or line of business after the employment ends. Michigan law lets an employer obtain one if it is reasonable as to its duration, geographical area, and the type of employment or line of business.[1.2] Create a free agreement with the builder below or download the PDF template.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Michigan law. If you notice an error or outdated information, please contact us.
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Employers use a non-compete agreement template to protect business information that a competitor could use. Common examples are trade secrets, confidential business information, and goodwill.
A typical agreement names the employer and the employee. It says what work the employee may not do for a competitor, for how long, and in which area.
An example shows the idea. Company A does not want a key specialist to move to its direct competitor, Company B. So Company A asks the specialist to sign a non-compete before leaving the job.
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After the relationship between a worker and company ends, the latter may want the former to consent to a non-compete, sometimes called “covenant not to compete,” to keep their business practices from being used by their competition. Below are the state-level NCA documents our visitors research most often.
Michigan's rule on non-compete agreements is Section 445.774a of the Michigan Compiled Laws, one section of the Michigan Antitrust Reform Act. An employer may obtain from an employee an agreement that protects the employer's reasonable competitive business interests and bars the employee from a line of business after the job ends. The agreement must be reasonable as to its duration, geographical area, and the type of employment or line of business.[1.1]
The statute puts it this way:
An employer may obtain from an employee an agreement or covenant which protects an employer's reasonable competitive business interests and expressly prohibits an employee from engaging in employment or a line of business after termination of employment if the agreement or covenant is reasonable as to its duration, geographical area, and the type of employment or line of business.
The same section adds these points:
The FormsPal Michigan non-compete agreement is a short contract between an employee and a company. The form calls the employee the Agent and the employer the Company. You fill in the blanks and check the boxes that fit your situation.
A non-compete agreement limits what a person can do after a job ends, so read it closely before signing. These questions are practical advice, not Michigan legal requirements, and an attorney can tell you how the law applies to your situation.
These answers explain how Section 445.774a of the Michigan Compiled Laws treats a non-compete agreement between an employer and an employee. The statute allows an employer to obtain such an agreement when it is reasonable as to its duration, geographical area, and the type of employment or line of business.[1.2]
In Michigan, an employer may obtain an agreement that restricts employment or a line of business after the job ends. The agreement must be reasonable in three ways:[1.2]
Section 445.774a permits an agreement that is reasonable as to its duration, geographical area, and the type of employment or line of business. If an agreement is found to be unreasonable in any respect, a court may limit it to render it reasonable and enforce it as limited.[1.1]
Section 445.774a still allows a non-compete that meets its test. The agreement must protect the employer's reasonable competitive business interests. It must also be reasonable as to its duration, geographical area, and the type of employment or line of business.[1.2]
Section 445.774a says an employer may obtain from an employee an agreement that expressly prohibits employment or a line of business after termination of employment. The agreement must be reasonable as to its duration, geographical area, and the type of employment or line of business.[1.2]
It depends on what your agreement says and whether it is reasonable as to its duration, geographical area, and the type of employment or line of business. A court may limit an agreement that is unreasonable in any respect and enforce it as limited.[1.1] An attorney can read your agreement and tell you how this applies.
General information, not legal or tax advice.
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