HOUSE BILL No. 6008


     September 15, 1998, Introduced by Rep. Middleton and referred to the Committee on Commerce.


        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:

 1         Sec. 4a.  (1) An employer may obtain from an employee an

 2    agreement or covenant  which  THAT protects an employer's

 3     reasonable  competitive business interests and expressly prohib-

 4    its an employee from engaging in employment or a line of business

 5    after termination of employment if the agreement or covenant is

 6     reasonable as to its duration, geographical area, and the type

 7     of employment or line of business.  To the extent any such agree-

 8     ment or covenant is found to be unreasonable in any respect, a

 9     court may limit the agreement to render it reasonable in light of

10     the circumstances in which it was made and specifically enforce




   05165'97                                                 LTB
                                              2

 1    the agreement as limited.  LIMITED TO 1 OR MORE OF THE

 2    FOLLOWING:

 3         (A) THE AGREEMENT OR COVENANT PROHIBITS THE DISCLOSURE OF

 4    TRADE SECRETS.

 5         (B) THE AGREEMENT OR COVENANT PROHIBITS THE EMPLOYEE FROM

 6    SOLICITING THE CLIENTS OR CUSTOMERS OF THE EMPLOYER FOR NOT MORE

 7    THAN 90 DAYS AFTER TERMINATION OF THE EMPLOYMENT RELATIONSHIP.

 8         (C) THE AGREEMENT OR COVENANT PERTAINS TO SPECIAL, UNIQUE,

 9    OR EXTRAORDINARY EMPLOYEE SERVICES.

10         (2) This section  shall apply  APPLIES to covenants and

11    agreements  which  THAT are entered into after March 29, 1985.

12         (3) AS USED IN THIS SECTION, "SPECIAL, UNIQUE, OR EXTRAORDI-

13    NARY EMPLOYEE SERVICES" MEANS EMPLOYEE PARTICIPATION IN

14    POLICY-MAKING DECISIONS OR EMPLOYEE ACCESS TO CORPORATE PLANNING

15    MATERIALS OR CONFIDENTIAL EMPLOYMENT MATERIALS.

16         Enacting section 1.  This amendatory act takes effect April

17    1, 1999.























   05165'97          Final page.                            LTB