Payroll Client AccessCan I Require Employees to Sign Non-Compete Agreements in Wisconsin? Wisconsin Law on Requiring Non-Compete Agreements
BenHR > Non-Compete Agreements
Wisconsin employers can require employees to sign non-compete agreements, though they are only enforceable if they meet strict legal standards. Non-competes must protect legitimate business interests, such as trade secrets or client relationships, and must be limited in duration, scope and geographic area.
Agreements seen as overly broad or vague are often ruled unenforceable. Wisconsin courts aim to protect business needs and employee rights.
BenHR helps businesses create enforceable non-compete agreements tailored to Wisconsin law. Contact us today for more information.
BenHR Services & Resources
Legal Standards for Non-Compete Agreements in Wisconsin
Requirements for Enforceability
Wisconsin Statute § 103.465 governs non-compete agreements. If an agreement fails to meet the full set of legal requirements, courts may void it in its entirety. To be enforceable, a non-compete must meet all of the following criteria:
- Necessary for Employer Protection: Must safeguard legitimate business interests like trade secrets or customer relationships, not simply limit competition.
- Reasonable Duration: Restrictions typically last no more than two years. Longer periods may be challenged.
- Reasonable Geographic Scope: Agreements must clearly define the restricted area. Broad or undefined regions reduce enforceability.
- Not Overly Restrictive: Agreements must balance business protection with the employee’s right to earn a living.
- Clear and Specific Terms: Ambiguity can invalidate the agreement. All terms must be precise.
The Evolving Legal Landscape
Though Wisconsin law currently permits non-compete agreements meeting enforceability standards, the legal landscape continues to shift. In 2024, the FTC introduced a rule to ban most non-competes nationwide, which was blocked by a federal court. While Wisconsin law remains in effect, future updates may impact employer use of restrictive covenants. Stay informed and ready to adapt.
Why Work with BenHR on Non-Compete Agreements?
BenHR’s consultants help Wisconsin employers draft, revise and apply Wisconsin non-compete agreements within current legal standards. We work with businesses to reduce risk and strengthen contract enforceability while aligning policies with real-world needs. Our services include:
- Drafting tailored non-compete agreements to comply with Wisconsin law
- Reviewing existing documents for legal alignment
- Monitoring regulatory developments at both the state and federal levels
- Training leadership on best practices for agreement use