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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 903
January 4, 2024 - Introduced by Representatives J. ANDERSON, C. ANDERSON, BARE,
EMERSON, MADISON and SINICKI, cosponsored by Senator L. JOHNSON. Referred
to Committee on Labor and Integrated Employment.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to renumber and amend 103.465; to amend 103.465 (title); and to
create 103.465 (2) and (3) of the statutes; relating to: prohibitions on
nondisparagement clauses in employment contracts.
Analysis by the Legislative Reference Bureau
Under current law, a covenant by an employee or agent not to compete with his
or her employer or principal during the term of the employment or agency, or after
the termination of that employment or agency, within a specified territory and
during a specified time (covenant not to compete) is lawful and enforceable if the
restrictions imposed are reasonably necessary for the protection of the employer or
principal. Currently, any covenant not to compete that imposes an unreasonable
restraint on an employee or agent is illegal, void, and unenforceable even as to any
part of the covenant that would be a reasonable restraint.
This bill provides that a provision in an employment contract that prohibits an
employee or agent from disparaging an employer or principal after the termination
of the employment or agency is illegal, void, and unenforceable.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 103.465 (title) of the statutes is amended to read:
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SECTION 1 ASSEMBLY BILL 903
103.465 (title) Restrictive covenants in employment contracts;
prohibitions.
SECTION 2. 103.465 of the statutes is renumbered 103.465 (1) and amended to
read:
103.465 (1) COVENANTS IN EMPLOYMENT CONTRACTS NOT TO COMPETE. A covenant
by an assistant, servant, employee, or agent not to compete with his or her employer
or principal during the term of the employment or agency, or after the termination
of that employment or agency, within a specified territory and during a specified time
is lawful and enforceable only if the restrictions imposed are reasonably necessary
for the protection of the employer or principal. Any covenant, described in this
section, imposing subsection, that imposes an unreasonable restraint on trade is
illegal, void, and unenforceable even as to any part of the covenant or performance
that would be a reasonable restraint on trade.
SECTION 3. 103.465 (2) and (3) of the statutes are created to read:
103.465 (2) NONDISPARAGEMENT PROVISIONS IN EMPLOYMENT CONTRACT AFTER
TERMINATION OF EMPLOYMENT OR AGENCY PROHIBITED. A provision in an employment
contract that requires an assistant, servant, employee, or agent not to disparage his
or her former employer or former principal in writing or in speech after the
termination of the employment or agency imposes an unreasonable restraint on
trade and is illegal, void, and unenforceable.
(3) NOTICE POSTED. Each employer and principal shall post, in one or more
conspicuous places where notices to assistants, servants, employees, and agents are
customarily posted, and in a conspicuous place on the employer's or principal's
website if the employer or principal maintains a website, a notice in a form approved
by the department that explains that an employment contract provision that
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SECTION 3
ASSEMBLY BILL 903
prohibits a former employee or agent from disparaging the employer or principal
after termination of employment or agency is an unreasonable restraint on trade and
is illegal, void, and unenforceable.
SECTION 4.0Initial applicability.
(1) NONDISPARAGEMENT PROVISION IN EMPLOYMENT CONTRACTS. This act first
applies to a nondisparagement provision in an employment contract that is entered
into, extended, modified, or renewed on the effective date of this subsection.
(END)
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