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MI HB4399

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).


summary

Introduced
04/12/2023
In Committee
12/05/2024
Crossed Over
Passed
Dead
12/31/2024

Introduced Session

102nd Legislature

Bill Summary

A bill to amend 1984 PA 274, entitled"Michigan antitrust reform act,"by amending section 4a (MCL 445.774a), as added by 1987 PA 243.

AI Summary

This bill amends the Michigan Antitrust Reform Act to place restrictions on employers' use of noncompete agreements. Key provisions include: 1) Employers must provide written notice of the noncompete requirement to applicants, disclose the agreement terms to employees before hiring, and post a summary of the law at the worksite. 2) Employers are prohibited from requiring noncompete agreements with low-wage employees, defined as minors or employees earning less than 138% of the federal poverty line for a family of 3. 3) Noncompete agreements obtained in violation of these provisions are void and unenforceable. 4) Employers found in violation face civil penalties up to $5,000 per violation. 5) Courts can void or limit unreasonable noncompete agreements and award costs and lost income to the employee. The bill takes effect 90 days after enactment.

Committee Categories

Labor and Employment

Sponsors (14)

Last Action

Placed On Third Reading (on 12/11/2024)

Bill Topics

Labor and Employment
  • ‐ Fair Labor Standards
  • ‐ General Labor and Employment

bill text


bill summary

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bill summary

Document Type Source Location Created
State Bill Page http://legislature.mi.gov/doc.aspx?2023-HB-4399 04/12/2023
Fiscal Note/Analysis - House: Summary as Reported from Committee https://legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-4399-6D9AB8A3.pdf 12/11/2024
Fiscal Note/Analysis - House: Summary as Introduced https://legislature.mi.gov/documents/2023-2024/billanalysis/House/pdf/2023-HLA-4399-1D16974B.pdf 12/05/2024
BillText http://www.legislature.mi.gov/documents/2023-2024/billintroduced/House/htm/2023-HIB-4399.htm 04/12/2023
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