Non-Compete Laws in Wisconsin
Generally enforceable
Wisconsin has no statute specifically restricting non-compete agreements beyond a general requirement of reasonableness. Courts evaluate whether agreements impose unreasonable restraints.
Key details
| Enforceability | Generally enforceable |
|---|---|
| Blue pencil doctrine | Varies |
What this means for you
Wisconsin courts evaluate non-competes for reasonableness. Agreements that impose unreasonable restraints may be voided.
Non-compete laws in Wisconsin: what you need to know
Wisconsin has no statute specifically restricting non-compete agreements beyond a general reasonableness requirement. Courts evaluate whether agreements impose unreasonable restraints on employees. Wisconsin courts have developed a body of case law that provides guidance on what constitutes a reasonable non-compete.
Wisconsin courts consider several factors when evaluating non-competes, including whether the restriction is necessary to protect the employer's interests, whether it imposes unreasonable hardship on the employee, and whether it is injurious to the public. The analysis is fact-specific and depends on the circumstances of each case.
One notable feature of Wisconsin's approach is that courts have sometimes been skeptical of non-competes that lack adequate consideration. For non-competes signed by existing employees, courts may require that the employee received something of value beyond continued employment, such as a raise, promotion, or access to new proprietary information.
For Wisconsin workers, the common law approach means that the enforceability of your non-compete depends on its specific terms and the facts of your employment. If you believe your agreement is unreasonably restrictive, consult an employment attorney.
Wisconsin courts have a history of taking a pragmatic approach to non-competes. They recognize that employers have legitimate interests in protecting trade secrets and customer relationships, but they also recognize that workers need the freedom to earn a living. This balanced approach means that the outcome in any given case depends heavily on the specific facts.
One area where Wisconsin workers should be particularly cautious is the issue of overly broad non-competes that are presented as standard form contracts. Some employers use the same non-compete agreement for all employees, regardless of their role or access to sensitive information. A non-compete that makes sense for a senior executive with access to trade secrets may be completely unreasonable when applied to an entry-level employee. If you are presented with a non-compete that seems disproportionate to your role, that is worth flagging with an attorney.
For Wisconsin workers, understanding the issue of consideration is particularly important. If your employer asked you to sign a non-compete after you were already employed, the agreement may require additional consideration beyond continued employment. A raise, bonus, or access to new proprietary information at or around the time you signed can provide the necessary consideration. Without it, the agreement may be vulnerable to challenge even if the substantive restrictions are otherwise reasonable.
Wisconsin workers should also be aware that the state's approach to consideration for non-competes is an important practical protection. If you signed a non-compete when you started your job, the employment itself generally serves as consideration. But if your employer asked you to sign one later, the employer needs to show that you received something of value in exchange. Keep records of when you signed the agreement and what, if any, additional benefits you received at the time. These records can be decisive in a dispute.
More Wisconsin workplace laws
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Frequently asked questions about non-compete laws in Wisconsin
Wisconsin has no statute specifically restricting non-competes. Courts evaluate agreements under a general reasonableness standard.
Courts consider whether the restriction is necessary to protect the employer's interests, whether it imposes unreasonable hardship, and whether it is injurious to the public.
No. Wisconsin does not use an income threshold. Enforceability depends on the reasonableness of the agreement.
For new employees, the job offer may suffice. For existing employees, additional consideration such as a raise or promotion may be required.
Wisconsin courts have some discretion but have also shown willingness to void agreements that impose unreasonable restraints rather than modifying them.