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A non-compete agreement in Wisconsin is a legal document with restrictive covenants used to protect an employer's business interests and trade secrets from competitors. A non-compete agreement can be a standalone agreement or be a part of an employment contract agreement that also includes a confidentiality agreement/non-disclosure agreement and nonsolicitation agreement.
Wisconsin employers protect their interests by having their new hires, contractors, key personnel, and other associates sign a written promise that they will refrain from competitive actions once their employment or involvement with the company comes to an end. This generally entails that the individual refrain from procuring employment or partnering with a direct competitor for a period of time and/or within a specific geographic area.
Hiring an independent contractor to work for your Wisconsin business? Download an independent contractor agreement form now!
Wisconsin's non-compete laws are codified in Wisconsin Statutes at Wis. Stat. § 103.465. They are also set by court decisions of the Wisconsin Supreme Court and the Wisconsin Court of Appeals.
Wisconsin law specifies that non-compete agreements are enforceable as long as their limitations do not go beyond what is necessary to protect the privacy of the company. This means that Wisconsin state courts will uphold the enforceability of such agreements as long as they do not cause unnecessary harm to the former employee’s ability to procure employment once their time with the former employer comes to an end or are against public policy.
Courts will review non-compete agreements for reasonableness in time restriction and geographical area.
The Wisconsin Supreme Court has held that an employer can have a legitimate protectable interest in a relationship with a former customer. Star Direct, Inc. v. Dal Pa.
Continued employment of an at-will employee is sufficient consideration for a non-compete agreement. Runzheimer International, Ltd. v. Friedlen, et al.
Because of the different Wisconsin statutory and case laws that govern a non-compete agreement, it is important to seek legal advice from a Wisconsin employment law firm when drafting or signing a non-compete or employment agreement.
Protect your Wisconsin business by also using a Wisconsin non-disclosure agreement form. Download a Wisconsin non-disclosure agreement form now!
A Wisconsin non-compete agreement should generally include the following provisions:
Disclaimer: While these are the terms that should generally be included in a Wisconsin non-compete agreement, this should not be construed as a substitute for the advice of a licensed Wisconsin employment law attorney.
After the completion of the non-compete agreement, the parties should keep a copy of the document for their records.
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