LRB-2419/1
GMM:jld:pg
2001 - 2002 LEGISLATURE
May 18, 2001 - Introduced by Representatives Schneider and Sinicki. Referred to
Committee on Labor and Workforce Development.
AB408,1,3
1An Act to renumber and amend 103.465; and
to create 103.465 (1) of the
2statutes;
relating to: covenants not to compete with an employer or principal
3after the termination of the employment or agency.
Analysis by the Legislative Reference Bureau
Under current law, a covenant by an assistant, servant, 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 the 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. Such a covenant
that imposes an unreasonable restraint of trade, however, is illegal, void, and
unenforceable even as to any part of the covenant that would be a reasonable
restraint of trade.
This bill declares that a covenant by an assistant, servant, or agent not to
compete with his or her employer after the termination of the employment or agency
is per se an unreasonable restraint of trade and is illegal, void, and unenforceable
even as to any part of the covenant that would be a reasonable restraint of trade.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB408, s. 1
1Section
1. 103.465 of the statutes is renumbered 103.465 (2) and amended to
2read:
AB408,2,123
103.465
(2) Covenants not to compete during employment. A covenant by an
4assistant, servant
, or agent not to compete with his or her employer or principal
5during the term of the employment or agency
, or after the termination of that
6employment or agency, within a specified territory and during a specified time is
7lawful and enforceable only if the restrictions imposed are reasonably necessary for
8the protection of the employer or principal. Any covenant
, described in this
9subsection, imposing not to compete with an employer or principal during the term
10of the employment or agency that imposes an unreasonable restraint
of trade is
11illegal, void
, and unenforceable even as to any part of the covenant or performance
12that would be a reasonable restraint
of trade.
AB408, s. 2
13Section
2. 103.465 (1) of the statutes is created to read:
AB408,2,1814
103.465
(1) Covenants not to compete after termination of employment. A
15covenant by an assistant, servant, or agent not to compete with his or her employer
16or principal after the termination of the employment or agency imposes an
17unreasonable restraint of trade and is illegal, void, and unenforceable even as to any
18part of the covenant or performance that would be a reasonable restraint of trade.
AB408,2,2420
(1)
Covenants not to compete after termination of employment. This act first
21applies to an assistant, servant, or agent who, on the day before the effective date of
22this subsection, is bound by a covenant not to compete with his or her employer or
23principal after the termination of the employment or agency on the day on which the
24covenant expires or is extended, modified, or renewed, whichever occurs first.
