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GSS H07164'26_HB6119_INTR_1 omn508
HOUSE BILL NO. 6119
A bill to amend 1984 PA 274, entitled
"Michigan antitrust reform act,"
by amending section 4a (MCL 445.774a), as added by 1987 PA 243.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4a. (1) An Except as otherwise provided under subsection 1
(3), an employer may obtain from an employee an a noncompete 2
agreement or covenant which that protects an employer's reasonable 3
competitive business interests and expressly prohibits an employee 4
from engaging in employment or a line of business after termination 5
June 18, 2026, Introduced by Reps. Aragona, Harris and DeBoyer and referred to Committee on
Government Operations.
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GSS H07164'26_HB6119_INTR_1 omn508
of employment if the noncompete agreement or covenant is reasonable 1
as to its duration, geographical area, and the type of employment 2
or line of business. To the extent any such a noncompete agreement 3
or covenant is found to be unreasonable in any respect, a court may 4
limit the agreement to render it reasonable in light of the 5
circumstances in which it was made and specifically enforce the 6
agreement as limited. 7
(2) This section shall apply Subsection (1) applies to 8
covenants and agreements which are entered into after March 29, 9
1985. 10
(3) Except as otherwise provided in subsection (4), an 11
employer that has an annual revenue of more than $2,000,000,000.00 12
or a subsidiary of that employer shall not obtain from a physician 13
a noncompete agreement described in subsection (1). A noncompete 14
agreement entered into before the amendatory act that added this 15
subsection between an employer and a physician that is contrary to 16
this subsection is void. 17
(4) An employer or subsidiary described in subsection (3) may 18
obtain from a physician a noncompete agreement described in 19
subsection (1) if the noncompete agreement expressly prohibits the 20
physician from engaging in employment only with another employer 21
that has an annual revenue of more than $2,000,000,000.00 or a 22
subsidiary of that other employer. 23
(5) As used in this section, "physician" means that term as 24
defined in section 17001 of the public health code, 1978 PA 368, 25
MCL 333.17001. 26