In fact, an employment contract may have a provision stating that the employee forfeits his pension if he later works for a competitor. Woodward v Cadillac Overall Supply Co, 396 Mich. 379; 240 N.W.2d 710 (1976); Saginaw Joint Venture v Elias Brothers Restaurants, Inc, 106 Mich. App. 274; 307 N.W.2d 759 (1981), lv den 413 Mich. 856 (1982). However, an employer's legitimate interest in discouraging his own experienced workers from retiring early and collecting benefits while simultaneously providing skilled and experienced labor to his competitors is not present in this case.
Michigan courts appear to have applied the statute strictly, distinguishing forfeiture provisions from direct prohibitions and applying the statute to the latter but not the former case. See Saginaw Joint Venture v. Elias Brothers Restaurants, Inc., 106 Mich. App. 274, 276-77, 307 N.W.2d 759 (1981). Interface argues that Michigan would not apply the statute to the present case because the agreement in question actually provides a forfeiture and does not directly prohibit employment.