Michigan2026Active
HB4040
Rules for Noncompete Agreements in Employment
Last scannedAug 24, 2026, 10:53 AM
In one sentence
This bill changes the law to stop employers from making workers sign certain noncompete agreements unless specific conditions are met.
What it does
- Prohibits employers from requiring employees to enter into certain noncompete agreements unless certain conditions are met.
- Amends section 4a of 1984 PA 274 (MCL 445.774a).
Who it affects
- Employers who require employees to enter into noncompete agreements.
Limits and unknowns
- The official text does not list what specific conditions must be met for an agreement to be allowed.
- The bill is currently active and has no effective date yet.
- No details are provided about penalties or enforcement methods.
Official record
Sources
Official summary
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).