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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Vicki P. on ContractsCounsel
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Vicki P.

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Employment

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Washington

Asked on Jul 11, 2023

Noncompete agreement termination options?

I recently left my job after signing a Noncompete Agreement. I am looking for a new job, but I am concerned about the restrictions in the Noncompete Agreement and how it might affect my ability to find a new job. I am looking for advice on my options for terminating or modifying the Noncompete Agreement so that I can find a new job without having to worry about any potential legal repercussions.

Merry K.

Answered Aug 15, 2023

I am a WA State employment attorney. If you didn’t receive anything in return for signing the non-compete, it may be relatively easy to get out of it. If, however, you signed in return for something, such as a severance package, it will be challenging to get out of the agreement. However, many non-compete agreements are written overly broadly and may not be enforceable under the laws of WA and other states. You may want to consult with a WA State employment attorney for a review of the documents and law(s) of the state(s) where you may want to work or set up a business. (A WA State attorney can only provide legal advice in WA, but can help you find applicable law/case decisions for other states but without providing anything beyond information, much like a law librarian).

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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.

Curt L.

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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Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?

I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?

Matthew S.

Answered Dec 16, 2023

No, this at worst is a civil matter and not a criminal matter. F

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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 May 21, 2023

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.

Answered May 30, 2023

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.

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