Sunday, February 7, 2010

Michigan Legislature to Make Noncompetes in Broadcast Industry Illegal?


Both house of the Michigan legislature have proposed legislation banning noncompetes in the broadcast industry. SB No. 1068 and HB No. 5750, if passed, would prohibit broadcast industry employers from requiring broadcast employees to agree to, among other things, noncompetes. Similar bills are already law in Arizona, Connecticut, Illinois, Massachusetts, Maine, New York, Washington, and Washington D.C. The proposals provide that parties who prevail in an action for a violation are entitled to attorneys' fees and costs. The proposals provide for civil damages but don't indicate an amount.

Michigan employers heavily rely on noncompete agreements. They should view this as an attempt to infringe on their rights to insist on these provisions.

Click here for a copy of the House bill.

Click here for a copy of the Senate bill.

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