Choice of Law in Noncompetition Law and Litigation
To make matters more complicated, the legal standards governing noncompetition agreements differ drastically from one jurisdiction to the next. On one end of the spectrum are states like Michigan that generally enforce noncompetition agreements, provided they protect a legitimate business interest, are reasonable in scope, and are appropriately supported by consideration. On the other end of the spectrum are states like California, which prohibits noncompetition agreements in all but the narrowest circumstances. In the middle are states like Illinois and Oregon that impose strict and sometimes idiosyncratic requirements as conditions of enforceability. As a result of such differences, an agreement that is clearly enforceable in one jurisdiction may range from questionable to clearly unenforceable in others.
Click here to read the article in The Michigan Business Law Journal.