Are Non-Competes Enforceable in Michigan?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable — statute sets rules
Enforceable if reasonable; courts may narrow overbroad terms
Michigan's Antitrust Reform Act allows an employer to obtain a non-compete that protects its reasonable competitive business interests if it is reasonable in duration, geographic area and type of work. If a covenant is unreasonable in any respect, a court may limit it to what is reasonable and enforce it as limited. There is no pay threshold, notice rule or profession-specific ban.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
Michigan enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- Michigan: Enforceable if reasonable; courts may narrow overbroad terms. MCL 445.774a
Other Michigan rules to check
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Michigan non-compete rules
- Statute
- MCL 445.774a
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
Recent and pending changes
Pending: HB 4040 (2025, ban on most non-competes) has been in the House Economic Competitiveness Committee since January 30, 2025; physician bills HB 4514 (2025) and HB 6119 (2026) are also in committee.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Michigan?
Enforceable if reasonable; courts may narrow overbroad terms. Michigan's Antitrust Reform Act allows an employer to obtain a non-compete that protects its reasonable competitive business interests if it is reasonable in duration, geographic area and type of work. If a covenant is unreasonable in any respect, a court may limit it to what is reasonable and enforce it as limited. There is no pay threshold, notice rule or profession-specific ban.
Did the FTC ban non-competes in Michigan?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable — statute sets rules): Alabama, Arkansas, Florida, Georgia, Hawaii, Idaho, Louisiana, North Carolina
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Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Michigan.