Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB903 Compare Versions

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

Old	New	Differences
1	1	LRB-3972/1
2	2	MIM:amn
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 903
5	5	January 4, 2024 - Introduced by Representatives J. ANDERSON, C. ANDERSON, BARE,
6	6	EMERSON, MADISON and SINICKI, cosponsored by Senator L. JOHNSON. 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	nondisparagement 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 an
22	22	employee or agent from disparaging an employer or principal after the termination
23	23	of the employment or agency is illegal, void, and unenforceable.
24	24	The people of the state of Wisconsin, represented in senate and assembly, do
25	25	enact as follows:
26	26	SECTION 1. 103.465 (title) of the statutes is amended to read:
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30	30	4 - 2 -2023 - 2024 Legislature LRB-3972/1
31	31	MIM:amn
32	32	SECTION 1 ASSEMBLY BILL 903
33	33	103.465 (title) Restrictive covenants in employment contracts;
34	34	prohibitions.
35	35	SECTION 2. 103.465 of the statutes is renumbered 103.465 (1) and amended to
36	36	read:
37	37	103.465 (1) COVENANTS IN EMPLOYMENT CONTRACTS NOT TO COMPETE. A covenant
38	38	by an assistant, servant, employee, or agent not to compete with his or her employer
39	39	or principal during the term of the employment or agency, or after the termination
40	40	of that employment or agency, within a specified territory and during a specified time
41	41	is lawful and enforceable only if the restrictions imposed are reasonably necessary
42	42	for the protection of the employer or principal. Any covenant, described in this
43	43	section, imposing subsection, that imposes an unreasonable restraint on trade is
44	44	illegal, void, and unenforceable even as to any part of the covenant or performance
45	45	that would be a reasonable restraint on trade.
46	46	SECTION 3. 103.465 (2) and (3) of the statutes are created to read:
47	47	103.465 (2) NONDISPARAGEMENT PROVISIONS IN EMPLOYMENT CONTRACT AFTER
48	48	TERMINATION OF EMPLOYMENT OR AGENCY PROHIBITED. A provision in an employment
49	49	contract that requires an assistant, servant, employee, or agent not to disparage his
50	50	or her former employer or former principal in writing or in speech after the
51	51	termination of the employment or agency imposes an unreasonable restraint on
52	52	trade and is illegal, void, and unenforceable.
53	53	(3) NOTICE POSTED. Each employer and principal shall post, in one or more
54	54	conspicuous places where notices to assistants, servants, employees, and agents are
55	55	customarily posted, and in a conspicuous place on the employer's or principal's
56	56	website if the employer or principal maintains a website, a notice in a form approved
57	57	by the department that explains that an employment contract provision that
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82	82	25 - 3 -2023 - 2024 Legislature
83	83	LRB-3972/1
84	84	MIM:amn
85	85	SECTION 3
86	86	ASSEMBLY BILL 903
87	87	prohibits a former employee or agent from disparaging the employer or principal
88	88	after termination of employment or agency is an unreasonable restraint on trade and
89	89	is illegal, void, and unenforceable.
90	90	SECTION 4.0Initial applicability.
91	91	(1) NONDISPARAGEMENT PROVISION IN EMPLOYMENT CONTRACTS. This act first
92	92	applies to a nondisparagement provision in an employment contract that is entered
93	93	into, extended, modified, or renewed on the effective date of this subsection.
94	94	(END)
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