Wisconsin Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers (Wisconsin)

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.

  1. Is there a need to restrict the employee for the protection of the business?
  2. Is the duration of the non-compete agreement reasonable?
  3. Is the restricted geographic area reasonable?
  4. Are the restrictions against the reasonable and not harsh or oppressive?
  5. 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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Asked on May 21, 2023

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.

Answered May 30, 2023

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.

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Asked on Jul 25, 2023

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I recently accepted a job offer with a new employer who asked me to sign a noncompete agreement. I am concerned that the agreement may not be in line with public policy and wanted to get a professional opinion from a lawyer to make sure I am not putting myself in a difficult situation.

Merry K.

Answered Aug 8, 2023

If you are in Washington State, where I'm licensed, as opposed to D.C., please let me know what kind of help you are looking for - have you already signed the agreement? I've been a WA State attorney for nearly 38 years, and specialize in employment law.

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Asked on Mar 31, 2021

Can I get out of my noncompete agreement?

I am looking at my options.

Donya G.

Answered Mar 31, 2021

You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

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Asked on Jul 4, 2023

How does a noncompete agreement work?

I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.

Nancy B.

Answered Aug 4, 2023

In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett

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Asked on Jun 3, 2023

Noncompete agreement and moonlighting?

I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.

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Answered Jun 6, 2023

If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.

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