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Enforceability of Covenants Not to Compete By Daniel J. Schulte, JD, MSMS Legal Counsel
Q:
Several questions have been received lately regarding the enforceability of a covenant not to compete. These questions arise in the context of an employment relationship and the purchase/sale of a medical practice. Some ask whether they
are enforceable at all in Michigan. Others what a time period and geographic scope that they know will be enforceable. Yet others are unwilling to agree to what is being asked of them in an employment agreement or a purchase agreement and are seeking information to use in negotiations with an employer or a buyer/seller.
The short answer is that a covenant not to compete IS enforceable in Michigan if it is reasonable. However, to fully address this issue three points must be considered.
6 michigan MEDICINEÂŽ
| JANUARY / FEBRUARY 2020
