Another state proposes near-total noncompete ban: 5 things to know

A bill has been introduced in the Wisconsin Legislature that would ban most noncompete agreements, the Wisconsin Law Journal reported Oct. 31. 

Here are five things to know:

1. Given the bill's Democratic sponsors, however, it "appears unlikely the bill will become law," the report said. 

2. The bill would allow employers to use nondisclosure agreements and restrict customer lists and intellectual property, and would also distinguish between restrictions imposed during employment versus after an employee has left.

3. Particularly, the bill imposes that any restraint on trade is now illegal and void — likely to provide more leeway for courts to strike down noncompetes. 

4. Under the bill, employers would be required to post a government-approved notice at the workplace and on their website that noncompetes are void except for the exceptions for nondisclosures. 

5. Under current law, noncompetes are enforceable if they are necessary for the employer's protection, lasts a reasonable time period, covers a reasonable territory, is reasonable to the employee and is reasonable to the public.

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