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Can I require employees to sign non-compete agreements in Wisconsin? What are the requirements?

Yes, non-compete agreements are generally enforceable in Wisconsin, but there are certain requirements that must be met.

Requirements for Non-Compete Agreements in Wisconsin

Non-compete agreements must be reasonable in scope, duration, and geographic area. Wisconsin courts will consider the following factors when determining whether a non-compete agreement is reasonable:

  • The nature of the employer’s business
  • The employee’s role in the business
  • The geographic area in which the non-compete applies
  • The duration of the non-compete

Additionally, non-compete agreements must be supported by consideration, meaning that the employee must receive something of value in exchange for agreeing to the non-compete. Continued employment may be sufficient consideration, but other forms of consideration may be required depending on the circumstances.

Exceptions to Non-Compete Agreements in Wisconsin

Wisconsin law provides certain exceptions to non-compete agreements. For example, non-compete agreements are unenforceable against employees who are terminated without cause or who are laid off. Additionally, non-compete agreements are unenforceable against employees who earn less than $33,000 per year.

Collective Bargaining Agreements

It is important to note that non-compete agreements may be subject to collective bargaining agreements. Matters subject to collective bargaining to the point of impasse are wage rates, fringe benefits, hours, and conditions of employment [1.6].

Rights of Employees

Employees have the right to self-organization and the right to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in lawful, concerted activities for the purpose of collective bargaining or other mutual aid or protection [2.1].

Conclusion

In summary, non-compete agreements are generally enforceable in Wisconsin, but they must be reasonable in scope, duration, and geographic area, and they must be supported by consideration. There are also certain exceptions to non-compete agreements under Wisconsin law. It is important to note that non-compete agreements may be subject to collective bargaining agreements and employees have the right to self-organization and collective bargaining.

Source(s):
Jurisdiction

Wisconsin