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HB4040 • 2026

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).

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).

Labor
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Denise Mentzer (District 61), Carrie Rheingans (District 47), Jason Morgan (District 23), Jasper Martus (District 69), Joey Andrews (District 38), Mike McFall (District 14), Donavan McKinney (District 11), Samantha Steckloff (District 19), Matt Koleszar (District 22), Sharon MacDonell (District 56)
Last action
2025-02-04
Official status
bill electronically reproduced 01/30/2025
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about conditions under which employers can require noncompete agreements, such as payment or benefits to employees. It also lacks information on the duration limits and restrictions on types of work for noncompete agreements.

Rules for Noncompete Agreements

This law stops employers from making workers sign noncompete agreements unless certain rules are followed.

What This Bill Does

  • It makes it illegal for employers to ask employees to sign noncompete agreements unless the agreement meets specific requirements.

Who It Names or Affects

  • Employees who might be asked to sign noncompete agreements
  • Employers who want their workers to sign noncompete agreements

Terms To Know

Noncompete Agreement
A contract that stops someone from working in the same field or for a competitor after leaving a job.

Limits and Unknowns

  • The bill does not specify what happens if an employer breaks this rule.
  • It is unclear how strictly employers will have to follow these rules.

Bill History

  1. 2025-02-04 HJ 11 Pg. 89

    bill electronically reproduced 01/30/2025

  2. 2025-01-30 HJ 10 Pg. 85

    introduced by Representative Rep. Denise Mentzer

  3. 2025-01-30 HJ 10 Pg. 85

    read a first time

  4. 2025-01-30 HJ 10 Pg. 85

    referred to Committee on Economic Competitiveness

Official Summary Text

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).