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The Clause About Working Elsewhere

Wis. Stat. 103.465 — reasonably necessary, or void entirely

In Wisconsin, a covenant by an employee or agent not to compete with the employer, during or after the employment, within a specified territory and during a specified time, is lawful and enforceable only if its restrictions are reasonably necessary to protect the employer.

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All or nothing. A covenant that imposes an unreasonable restraint is illegal, void and unenforceable, even as to any part of it that would have been a reasonable restraint. The statute does not save the reasonable part.

Territory and time. The section speaks of a covenant within a specified territory and during a specified time, and asks whether those restrictions are reasonably necessary for the protection of the employer or principal.

The assumptionWhat the law actually does
The assumptionA judge will cut an overbroad clause down to sizeWhat the law actually doesAn unreasonable covenant is void even as to any part that would be reasonable
The assumptionSigning the clause settles itWhat the law actually doesIt is enforceable only if the restrictions are reasonably necessary for the employer's protection

Nonsolicitation and confidentiality clauses, trade secrets and the facts of a particular job are not all on this page. What a particular situation carries is a question for a licensed Wisconsin attorney.

Sources for this section (1)
  1. Wis. Stat. 103.465 — Restrictive covenants in employment contracts

Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Wisconsin attorney.

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