Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0143

Introduced
3/7/23  

Caption

Labor: fair employment practices; noncompete agreements; prohibit employers from obtaining unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

Impact

One of the key provisions of SB 0143 is the prohibition against requesting noncompete agreements from individuals classified as low-wage employees. This is defined as those earning less than $15.00 per hour or an adjusted annual compensation lower than $31,200. Consequently, this bill seeks to provide greater protection for low-wage workers, preventing them from being bound by restrictive agreements that limit their job mobility. In terms of broader implications, the bill is designed to encourage competition by ensuring that employees have the freedom to pursue various job opportunities without facing legal repercussions from their previous employers for violating noncompete terms.

Summary

Senate Bill 0143 aims to amend the Michigan Antitrust Reform Act of 1984, specifically targeting the regulations surrounding noncompete agreements between employers and employees. The amendment seeks to establish stricter requirements for employers seeking to enforce such agreements by requiring them to provide clear written notice to job applicants regarding the necessity of a noncompete agreement. Additionally, employers must disclose the specific terms of any noncompete agreement before hiring the employee. These measures aim to ensure that employees are fully aware of any restrictions that could impact their future employment opportunities.

Contention

The bill's provisions are likely to generate discussion among legislators, employers, and employee rights advocates. While supporters argue that SB 0143 will protect employees and foster a more equitable labor market, critics may view the restrictions on noncompete agreements as overly burdensome for employers, particularly in sectors where intellectual property protection and competitive interests are paramount. Moreover, the bill offers avenues for enforcement, allowing the attorney general to act against employers who violate the noncompete stipulations, which could result in civil violations and fines. In essence, the bill represents an ongoing debate over the balance of power between employers and employees in the labor market.

Companion Bills

No companion bills found.

Previously Filed As

MI HB4399

Labor: fair employment practices; certain noncompete agreements; prohibit employers from requiring employees to enter into unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

MI HB4040

Labor: fair employment practices; certain noncompete agreements; prohibit employers from requiring employees to enter into unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

MI HB4537

Labor: fair employment practices; noncompete agreements; prohibit employers from obtaining from employees. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

MI HB4514

Labor: fair employment practices; certain noncompete agreements for physicians; prohibit. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

MI HB4972

Labor: fair employment practices; agreements that prohibit employees from disclosing certain information about violations of the Elliott-Larsen civil rights act; prohibit employers from entering into unless certain conditions are met. Amends 1976 PA 453 (MCL 37.2101 - 37.2804) by adding sec. 202b.

MI HB5623

Labor: fair employment practices; certain employment discrimination information; require employers to post. Amends sec. 602 of 1976 PA 453 (MCL 37.2602) & adds sec. 202b.

MI HB4323

Labor: fair employment practices; whistleblowers' protection act; modify definition of employee and protected activities. Amends title & secs. 1, 2, 3 & 5 of 1980 PA 469 (MCL 15.361 et seq.) & adds sec. 4a.

MI HB4396

Labor: fair employment practices; whistleblowers' protection act; modify definition of employee and protected activities. Amends title & secs. 1, 2, 3 & 5 of 1980 PA 469 (MCL 15.361 et seq.) & adds sec. 4a.

MI S0302

Prohibits noncompete agreements except for noncompete agreements between a seller and buyer of a business; creates civil action for an employer for the violation of an agreement by employee regarding disclosure or wrongful utilization of trade secrets.

MI HB06658

An Act Concerning Employer Use Of Noncompete Agreements.

Similar Bills

CA AB1076

Contracts in restraint of trade: noncompete agreements.

MI HB4399

Labor: fair employment practices; certain noncompete agreements; prohibit employers from requiring employees to enter into unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

MI HB4040

Labor: fair employment practices; certain noncompete agreements; prohibit employers from requiring employees to enter into unless certain conditions are met. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).

ME LD1496

An Act to Restrict Noncompete Clauses

NH HB1363

Relative to the enforceability of noncompete agreements in areas in which there is determined to be a critical shortage of workers.

FL H1219

Employment Agreements

IA SSB1106

A bill for an act prohibiting employers from requiring certain mental health professionals to enter into noncompete agreements and including effective date provisions.

MI HB4514

Labor: fair employment practices; certain noncompete agreements for physicians; prohibit. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).