Wisconsin has a specific statute governing non-compete agreements โ Wisconsin Statute ยง 103.465 โ and the state takes a stricter approach than many others. Most importantly, Wisconsin courts will generally not rewrite an overbroad non-compete, which gives employees strong leverage when agreements exceed what is reasonable.
Wisconsin's Non-Compete Statute
Under Wisconsin Statute ยง 103.465, a non-compete agreement is enforceable only if it is:
- Reasonably necessary to protect the employer's legitimate business interests
- Reasonable in duration
- Reasonable in geographic scope
- Reasonable in the type of employment or line of business it restricts
- Not contrary to the public good
Wisconsin Will NOT Rewrite Your Non-Compete
One of the most important features of Wisconsin non-compete law โ and most favorable to employees โ is that Wisconsin courts generally will not modify or "blue pencil" an overbroad agreement. If any part of the non-compete is unreasonable, the entire agreement may be void.
โ This is a significant employee protection. If your non-compete has a clearly unreasonable duration, an overly broad geographic scope, or restricts activities far beyond what is necessary, a Wisconsin court may void the entire agreement rather than narrowing it. Unlike Texas or Ohio where courts reform agreements, Wisconsin courts tend to void overreaching non-competes entirely.
What Wisconsin Courts Consider Reasonable
Duration
Wisconsin courts have generally viewed restrictions of 1-2 years as potentially reasonable. Restrictions extending beyond 2 years face significant scrutiny. The key is whether the time period is truly necessary to protect the employer's interest โ not simply what the employer prefers.
Geographic Scope
The geographic restriction must match where the employer actually does business and where you had customer contact. Wisconsin courts have voided restrictions that extend far beyond the employer's actual market area. A statewide restriction for an employee who only served a small region is likely to be struck down.
Scope of Activity
The restriction must be tied to what you actually did and what the employer is legitimately protecting. A restriction that prevents you from working in your entire industry โ when you only had access to a narrow slice of the business โ is likely overbroad in Wisconsin.
โ ๏ธ Because Wisconsin courts do not rewrite non-competes, employers in Wisconsin have strong incentive to draft agreements carefully. But many do not โ which means a surprising number of Wisconsin non-competes may have vulnerable provisions that could void the entire agreement.
Legitimate Business Interests in Wisconsin
Wisconsin courts recognize several legitimate interests that can justify a non-compete:
- Trade secrets and confidential proprietary information
- Established customer relationships developed at employer expense
- Specialized training that gives the employee a competitive advantage
Consideration in Wisconsin
Wisconsin requires adequate consideration for a non-compete to be enforceable. Signing as a condition of initial employment โ with the job itself as consideration โ is the strongest form. For mid-employment agreements, Wisconsin courts look for additional benefit beyond merely continuing employment.