Legally Enforceable?
Yes, as long as the employer can answer “yes” to each question in the 5-point test:[2]
- Is there a need to restrict the activities of the employee for the protection of the plaintiff?
- Is the duration too long?
- Is the territory being restricted considered reasonable?
- Are the restrictions against the employee unduly harsh or oppressive?
- Is the non-compete injurious to the general public?
An attorney is prohibited from entering into an agreement that restricts their ability to practice law in the State.[3]
Continued employment is not sufficient consideration to validate a non-compete agreement.[4]
“Consideration in addition to continued employment [is] required to support a covenant not to compete entered into by an existing at-will employee.”
Choice of Law
If an employer and employee agree to choose another state’s laws, it is dependent on those laws to be “reasonable” under Wisconsin.Therefore, if laws that are more advantageous to the employer are selected, there is a good chance it will not be considered “reasonable” by a Wisconsin court.[7]
Fired for NOT signing a non-compete?
Blue Penciling
Sources
- § 103.465
- Lakeside Oil Co. v. Slutsky (1959)
- SCR 20:5.6
- Runzheimer Int’l, Ltd. v. Friedlen (2015)
- D.L. Anderson’s Lakeside Leisure Co., Inc. v. Anderson LLC (2008)
- Gary Van Zeeland Talent, Inc. v. Sandas (1978)
- Beilfull v. Huffy Corporation (2004)
- Tatge v. Chambers & Owen Inc.
- Wausau Medical Center v. Asplund (1994)