Non-Compete Agreement in Wisconsin
State-specific overview · Employment Law
Wisconsin enforces non-competes if they are reasonable in time, area, and line of business and protect legitimate interests.
How Wisconsin treats Non-Compete Agreement
Wisconsin courts apply a reasonableness standard to non-compete agreements, requiring that they protect legitimate business interests such as trade secrets, confidential information, customer goodwill, or substantial relationships with prospective or existing customers. The restriction must be reasonable in duration (typically up to two years), geographic scope, and scope of prohibited activities. Wisconsin courts may modify an overly broad agreement to make it enforceable rather than striking it down entirely. The employer bears the burden of proving the non-compete is reasonable.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Wisconsin.