Wisconsin Employment Non-competition Package
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FAQ
Employees often think non-compete agreements are non-negotiable, but companies will negotiate with you if they really want you on their team.
In certain circumstances, it is possible to find non-compete contract loopholes that may void the contract. For example, if you can prove that you never signed the contract, or if you can prove the contract is against the public interest, you may be able to void the agreement.
I've got a very interesting question today and that is, do non-compete agreements apply in a layoff? And the short answer is yes. And I'm going to qualify that by saying a non-compete compete is as effective in a layoff as it is in another situation.
In Wisconsin, if part of a covenant is held invalid, the rest of the covenant is void. Most states allow the court to edit an illegal covenant into a legal one (commonly the ?blue pencil? test), but Wisconsin follows the ?red pencil? test that strikes the entire covenant if part of it is invalid.
To be enforceable, a covenant not to compete ?must (1) be necessary for the protection of the employer; (2) provide a reasonable time restriction; (3) provide a reasonable territorial limit; (4) not be harsh or oppressive as to the employee; and (5) not be contrary to public policy.? Fields Foundation, Ltd. v.
Wisconsin Limits Non-Compete Agreements So even if you've signed a contract that includes a non-compete agreement, your employer may not be able to enforce it against you in court. But that doesn't stop employers from trying to go beyond what the law allows.
There are now five states that outright ban virtually all non-competes, i.e., California, Colorado, Minnesota, North Dakota and Oklahoma. These laws have just very narrow exceptions, such as for certain sales of businesses.
