Q: Is my noncompete agreement enforceable under these conditions?
I live and work remotely in Michigan for a company based in Illinois. I signed a noncompete agreement in November 2021, governed by Illinois law, which restricts me from engaging in any similar business for 18 months in areas serviced during my employment. I earn about $40,000 a year. I am interested in a position directly with a hospital in my area, similar to my current role. My employer mentioned that HR voided the noncompete, but I didn't receive anything in writing. Is this noncompete agreement enforceable?
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A:
You're in a tough position, especially when your employer claims the noncompete has been voided but hasn’t provided that confirmation in writing. In Michigan, courts take a narrow view of noncompete agreements and only enforce them if they are reasonable in time, scope, and necessary to protect legitimate business interests. Since you work remotely in Michigan, your local state laws may be considered relevant even if the contract is governed by Illinois law.
Under Illinois law, as of 2022, noncompete agreements are not enforceable for employees earning less than $75,000 per year. Since you make around $40,000, your agreement may already be unenforceable under that rule, even without considering the Michigan connection. Additionally, if your next job at a hospital does not involve the same clients or confidential information from your current employer, that weakens any argument that your move would harm the business.
Still, without written confirmation that the agreement was voided, there’s a risk your employer could try to enforce it later. You should ask for a signed statement or email from HR confirming the noncompete is no longer valid. You have every right to move forward in your career, and based on your salary, location, and the new job you're considering, this agreement likely wouldn’t hold up if challenged.
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