Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB902 Compare Versions

Only one version of the bill is available at this time.

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1	1	LRB-3973/1
2	2	MIM:amn
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 902
5	5	January 4, 2024 - Introduced by Representatives J. ANDERSON, C. ANDERSON, BARE,
6	6	MADISON, PALMERI and SINICKI, cosponsored by Senator CARPENTER. Referred
7	7	to Committee on Labor and Integrated Employment.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to renumber and amend 103.465; to amend 103.465 (title); and to
10	10	create 103.465 (2) and (3) of the statutes; relating to: prohibitions on
11	11	postemployment nonsolicitation clauses in employment contracts.
12	12	Analysis by the Legislative Reference Bureau
13	13	Under current law, a covenant by an employee or agent not to compete with his
14	14	or her employer or principal during the term of the employment or agency, or after
15	15	the termination of that employment or agency, within a specified territory and
16	16	during a specified time (covenant not to compete) is lawful and enforceable if the
17	17	restrictions imposed are reasonably necessary for the protection of the employer or
18	18	principal. Currently, any covenant not to compete that imposes an unreasonable
19	19	restraint on an employee or agent is illegal, void, and unenforceable even as to any
20	20	part of the covenant that would be a reasonable restraint.
21	21	This bill provides that a provision in an employment contract that prohibits a
22	22	former employee or agent from recruiting an employee or agent of an employer or
23	23	principal to work for a different employer or principal after the termination of the
24	24	former employee's employment or agent's agency is illegal, void, and unenforceable.
25	25	The people of the state of Wisconsin, represented in senate and assembly, do
26	26	enact as follows:
27	27	SECTION 1. 103.465 (title) of the statutes is amended to read:
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31	31	4 - 2 -2023 - 2024 Legislature LRB-3973/1
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33	33	SECTION 1 ASSEMBLY BILL 902
34	34	103.465 (title) Restrictive covenants in employment contracts;
35	35	prohibitions.
36	36	SECTION 2. 103.465 of the statutes is renumbered 103.465 (1) and amended to
37	37	read:
38	38	103.465 (1) COVENANTS IN EMPLOYMENT CONTRACTS NOT TO COMPETE. A covenant
39	39	by an assistant, servant, employee, or agent not to compete with his or her employer
40	40	or principal during the term of the employment or agency, or after the termination
41	41	of that employment or agency, within a specified territory and during a specified time
42	42	is lawful and enforceable only if the restrictions imposed are reasonably necessary
43	43	for the protection of the employer or principal. Any covenant, described in this
44	44	section, imposing subsection, that imposes an unreasonable restraint on trade is
45	45	illegal, void, and unenforceable even as to any part of the covenant or performance
46	46	that would be a reasonable restraint on trade.
47	47	SECTION 3. 103.465 (2) and (3) of the statutes are created to read:
48	48	103.465 (2) NONSOLICITATION PROVISIONS IN EMPLOYMENT CONTRACT AFTER
49	49	TERMINATION OF EMPLOYMENT OR AGENCY PROHIBITED. (a) In this subsection,
50	50	“solicitation” means recruiting an assistant, servant, employee, or agent of an
51	51	employer or principal to work for or provide agent services for a different employer
52	52	or principal.
53	53	(b) Any provision in an employment contract that prohibits solicitation by a
54	54	former assistant, servant, employee, or agent after the termination of the
55	55	employment or agency of such assistant, servant, employee, or agent imposes an
56	56	unreasonable restraint on trade and is illegal, void, and unenforceable.
57	57	(3) NOTICE POSTED. Each employer and principal shall post, in one or more
58	58	conspicuous places where notices to assistants, servants, employees, and agents are
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83	83	25 - 3 -2023 - 2024 Legislature
84	84	LRB-3973/1
85	85	MIM:amn
86	86	SECTION 3
87	87	ASSEMBLY BILL 902
88	88	customarily posted, and in a conspicuous place on the employer's or principal's
89	89	website if the employer or principal maintains a website, a notice in a form approved
90	90	by the department that explains that an employment contract provision that
91	91	prohibits a former assistant, servant, employee, or agent from recruiting an
92	92	assistant, servant, employee or agent of the employer or principal after termination
93	93	of employment or agency is an unreasonable restraint on trade and is illegal, void,
94	94	and unenforceable.
95	95	SECTION 4.0Initial applicability.
96	96	(1) NONSOLICITATION PROVISION IN EMPLOYMENT CONTRACTS. This act first applies
97	97	to a nonsolicitation provision in an employment contract that is entered into,
98	98	extended, modified, or renewed on the effective date of this subsection.
99	99	(END)
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