Wisconsin Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers (Wisconsin)
- Avg cost to review a Non-Compete Agreement: $270.00
- Lawyers available: 25 Wisconsin employment lawyers
- Clients helped: 12 recent noncompete agreement projects in Wisconsin
- Avg lawyer rating: 5.0 (3 reviews)
Is a Non-Compete Agreement Enforceable in Wisconsin?
Yes. In Wisconsin, non-compete agreements are enforceable if the contract can pass the “5-Point Test” which was established by the Supreme Court of Wisconsin to regulate non-compete agreements.
The “5-Point Test” is comprised of five questions and in order for a non-compete to be enforceable, the employer must be able to answer “yes” to each question.
- Is there a need to restrict the employee for the protection of the business?
- Is the duration of the non-compete agreement reasonable?
- Is the restricted geographic area reasonable?
- Are the restrictions against the reasonable and not harsh or oppressive?
- Do the terms protect public interest?
As long as these questions are adhered to, an employer’s non-compete agreements should be enforceable in Wisconsin.
How Long Does a Wisconsin Non-Compete Agreement Last?
Wisconsin courts have determined that a term of two years is reasonable for a non-compete agreement when the geographic boundary is limited to one county. In most cases, the longer the duration of a non-compete agreement, the smaller the geographic boundary must be to keep the contract reasonable.
How Do You Get Around a Non-Compete Agreement in Wisconsin?
To get around a non-compete agreement in Wisconsin, an employee must show the court that the agreement fails the 5-Point Test and should be deemed unenforceable.
Other ways an employee may be able to get around a non-compete agreement include:
- Find work outside the geographic boundary
- Work in a different capacity or performing different tasks that are not covered by the non-compete agreement
- Attempt to renegotiate the agreement with the employer
What Voids a Wisconsin Non-Compete Agreement?
A non-compete agreement in Wisconsin must be supported by consideration to be a valid contract. The courts have ruled that continued employment does not qualify as adequate consideration and there needs to be additional incentives like a raise in pay or promotion to support signing a non-compete. Without additional consideration, a non-compete will be void.
Frequently Asked Questions
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Meet some of our Wisconsin Noncompete Agreement Lawyers
Vicki P.
Vicki graduated from Regent University School of Law in Virginia Beach, Virginia in 1996. She is a licensed attorney. She has been admitted to Wisconsin since 1998 and Pennsylvania since 1999.
"Perfect review of my loan agreement. Provided great info so I could make an informed decision."
Maxwell L.
Firm rated best ADR firm for Wisconsin and won an award for cultural innovation in dispute resolution from acquisition international magazine in 2016 and it was rated "Best of Brookfield" by Best Businesses in 2015. Attorney Maxwell C. Livingston was rated 10 best in Labor & Employment Law by American Institute of Legal Counsel and 40 Under 40 by American Society of Legal Advocates for 2016; he also won 10 Best by American Institute of Family Law Attorneys. He is licensed in Wisconsin in all state and federal courts, and in the 7th Circuit Court of Appeals, wherein he won a landmark decision in McCray v. Wielke.
"Great information and very helpful and patient. Highly recommend for what was needed."
Michael B.
Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.
"I’ve worked with Michael on two projects through Contracts Counsel, and both experiences were excellent. He was responsive, thorough, and delivered exactly what I needed. I would absolutely work with him again and highly recommend his services."
David W.
The Law Office of David Watson, LLC provides comprehensive and individualized estate-planning services for all stages and phases of life. I listen to your goals and priorities and offer a range of estate-planning services, including trusts, wills, living wills, durable powers of attorney, and other plans to meet your goals. And for convenience and transparency, many estate-planning services are provided at a flat rate.
"David quickly put in a bid and began work. He was very responsive to any questions I had."
September 2, 2020
Maury B.
Respected, driven, ethical, and high energy legal and business professional with strong focus on litigation, contracts and compliance issues. Critical management experience includes client development, developing core initiatives, and forecasting risk in major corporations. Strong legal research, analytical and problem solving skills with demonstrated adaptability in a multifaceted legal practice including delivering high value results in a Fortune 10 environment. Core competencies include: Tactical and strategic legal direction and support to clients which includes contract negotiation, drafting and review, business planning, and a passion for relationship management. Excellent legal research, writing, analytical and problem solving skills including legal training and compliance with regulatory requirements and corporate policies. Coordinates with in-house legal and business resources for team building with excellent verbal communication skills, coaching, and leadership.
September 12, 2022
Wendy C.
Business Advisor and Real Estate Consultant: Small boutique firm working to assist entrepreneurs, business start-ups, property investors, new home buyers, and distressed owners Wendy Calvert began her career as a corporate attorney focusing on complex commercial litigation, primarily in construction, property and casualty, and contractor liability. Through this experience, Wendy has managed and successfully litigated cases in Illinois and Wisconsin. In 2004, Wendy relocated to Illinois to work as an insurance litigation counsel and later as an executive sales consultant and insurance expert. Wendy now utilizes her skills as a contract negotiator, litigator, and sales consultant to negotiate real estate deals and help entrepreneurs create and grow the businesses of their dreams. EDUCATION Wendy earned her Juris Doctor in 1999 from the University of Wisconsin Madison. In 1989, Wendy graduated with a Bachelor of Arts in Business Administration and Communications from Marquette University.
August 1, 2023
Timothy J.
Financial Services, Business, Corporate, Personal Injury, and Healthcare. I've represented fortune 100 companies and defended individuals in personal debt litigation. Wide breadth of experience, ready to assist.
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Business Contracts
Noncompete Agreement
California
Noncompete agreement time restrictions?
I am an entrepreneur who recently signed a Noncompete Agreement with a potential business partner, and I am looking to gain a better understanding of the time restrictions that are in place. I am concerned that the terms of the agreement may prevent me from pursuing other opportunities in the future and want to make sure I am aware of all the restrictions before making any decisions.
Gagandeep K.
The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.
Employment
Noncompete Agreement
Connecticut
Noncompete agreement and change of control?
I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.
Thomas L.
If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.
Business Contracts
Noncompete Agreement
Florida
Noncompete agreement for consultants?
I am a consultant who is looking to take on a new client, but the client requires me to sign a Noncompete Agreement. I want to make sure that I am not signing away my rights, and that the agreement is fair and reasonable. I am also interested in understanding how this agreement would affect my ability to work with other clients.
Venus C.
Hello. I appreciate your concerns about signing a Noncompete Agreement. It's essential to protect your rights and ensure the agreement is fair and reasonable given that a noncompete typically restricts competing activities during or after the term of engagement. Without knowing more about the business relationship and reviewing the actual terms, whether the non-compete is fair, reasonable, or even enforceable remains an open-ended question. Bearing this in mind, if the noncompete is preventing you from taking on other clients during or after the end of your relationship (or both), the scope of this restriction must be reasonable in terms of time, geographic area, and the specific activities it seeks to prevent. For example, does the noncompete specify the types of clients, industries, or geographic areas that are off-limits? What is the duration of the noncompete? If the client breaches your main agreement, will that render your noncompete void and unenforceable? These are just a few general questions that require a thorough review and analysis against Florida non-compete laws. Overall, the ultimate goal is to carefully review the terms to understand how they might impact your ability to take on new clients. If you don’t understand or are unsure about the contractual terms and their legal implications, it's highly recommended you consult with an attorney who can review the noncompete and provide you with personalized legal advice before you sign.
Business
Noncompete Agreement
Florida
Noncompete agreement and business partners?
I am a business owner who has recently acquired a new partner. We are in the process of drafting a Noncompete Agreement to ensure that neither of us will compete against each other in the same market. We are looking for advice on what should be included in the agreement and how it should be enforced.
Daniel D.
The one thing to make sure with noncompete agreements is that it is reasonable in terms of duration and the area you cannot compete in. Courts use a reasonableness test to determine whether a noncompete agreement is valid. If provisions are deemed to be unreasonable and fail the test, they could be altered or struck out of the agreement.
Employee Rights
Noncompete Agreement
New York
Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?
I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?
Damien B.
Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.
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