When considering a noncompete agreement it is important to remember that such agreements are carefully scrutinized by Wisconsin courts.  Wisconsin law favors the unrestricted movement of workers and views critically contractual restraints on trade.

Wisconsin courts have nonetheless recognized that employers have legitimate interests that may be protected by a noncompete agreement provided that the noncompete agreement is narrowly drafted to protect those interests.  A protectable interest of employers includes company goodwill where customers may associate the company’s hard-earned goodwill more with the employee than with the employer.  Another protectable interest of employers is when employees have access to confidential information that may be critical to the ongoing success of the company, including the identity and non-public information of clients and potential clients interested in the company’s goods or services, sales strategies, and pricing.

However, Wisconsin law provides for a severe sanction for noncompete provisions that are not narrowly crafted to protect an employer’s legitimate interests.  If a Wisconsin court finds that a noncompete provision imposes an unreasonable restraint on trade, the entire provision will be found to be illegal, void and unenforceable even as to parts of the provision that standing alone would be reasonable if the court finds that the provision is indivisble.

As a result, it is important to proceed with care when drafting noncompete agreements in Wisconsin.

[Legal advice not only involves an understanding of the law, but the application of the law to a particular set of circumstances or facts.  Blog posts are imperfect tools to address the subtlety and exceptions of the law that may apply in particular situations.  As a result, the information in this blog post does not represent legal advice.  If you are in a situation where you need or desire legal advice, we would be happy to help.  Call Paul at 608-358-9413 to set-up your no-charge initial consultation.]