Abstract
This article clarifies the distinct legal standards for covenants not to compete in Michigan, particularly relevant for dentists selling their practice and remaining employed. A covenant in an employment agreement is enforceable if "reasonable," typically limited to two to three years and the employer's patient draw area. In contrast, a covenant within a purchase agreement, considered a commercial contract, is judged under a more lenient "rule of reason" standard. This standard is easier to satisfy, requiring only that the covenant does not adversely impact the relevant market. Consequently, purchasers often use the purchase agreement to impose harsher, longer-term restrictive covenants.
Recommended Citation
Schulte, Dan JD
(2025)
"Dentistry and the Law: Length of Covenants Not to Compete,"
The Journal of the Michigan Dental Association: Vol. 107:
No.
8, Article 6.
Available at:
https://commons.ada.org/journalmichigandentalassociation/vol107/iss8/6
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