Proposal Would Limit the Reach of Non-Compete Agreements for Low-Wage Workers

House Commerce Committee Hearing on HB 4874

A bill under consideration in the Michigan Legislature would limit the most abusive forms of overreaching of “non-compete agreements” and end unfair restrictions on low-wage workers.  At a recent committee hearing, B&W Attorney David Blanchard was on hand to testify on behalf of the Michigan Association for Justice – discussing the impact of these restrictions on low wage workers and the drag they have on the Michigan economy. Read MIRS Coverage on HB 4874. Academic surveys suggest nearly 20% of the workforce is bound by some form of non-compete agreement that restrict future employment.  It some job sectors, nearly 50% of the workforce find their career mobility limited.  Use of non-competes among low-wage workers has become prevalent in the last decade. In response, many states have adopted legal reforms to limit their use.  In Michigan, House Bill 4874 would prohibit use of non compete agreements for minors and workers making less than 138% of the federal poverty level for a family of three – currently about $28,000 per year.