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.
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 assumption | What the law actually does |
|---|---|
| The assumptionA judge will cut an overbroad clause down to size | What the law actually doesAn unreasonable covenant is void even as to any part that would be reasonable |
| The assumptionSigning the clause settles it | What 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)
- 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.