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MI HB4514

MI HB4514
Labor: fair employment practices; certain noncompete agreements for physicians; prohibit. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).


summary

Introduced
05/21/2025
In Committee
05/21/2025
Crossed Over
Passed
Dead

Introduced Session

103rd 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 modify rules around noncompete agreements, with a significant new provision specifically prohibiting noncompete agreements for physicians. Under the revised law, employers can generally obtain noncompete agreements that protect their reasonable competitive business interests, with restrictions that must be reasonable in duration, geographical area, and type of employment. Courts retain the ability to modify overly broad noncompete agreements to make them more reasonable. The key change is the addition of a new subsection that explicitly prevents employers from obtaining any noncompete agreements from physicians, rendering any existing such agreements void. The bill defines "physician" using the definition in the public health code, and the prohibition on physician noncompete agreements applies to both future and existing agreements. This change aims to provide physicians with greater employment flexibility and remove potential barriers to their professional mobility.

Committee Categories

Health and Social Services

Sponsors (12)

Last Action

Bill Electronically Reproduced 05/21/2025 (on 05/22/2025)

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